







/ . 
y o * „ 

V * 

' - K * *. % A 
* ***% •. 



O <j5 °<t> \ 

o. 

& 0 N O ° A 

'* V* V *'*°* CV .A 

^ a 4 Va'* ^ 

•MvA» VV 1 . 

v-* 


. w 

«fe , G vP J 

•* <3 A> 

*«. ** «G \b, ♦vTT* * 

» ,0* o‘I* •. ’*0. ^ 



V 

- A. V «•■’'*♦ 'Vi> <*0 C 

' ° A z £$%>:* \ « c «% 

• \0v. **rt!yje*W A cu 

O. *..,. 3 V V^\/ 

- ; < it ^ 

A 7 "/* o' * .‘A v/ U\ 

* *£/ V«s o * Av 





o V 

J °- 0 vSHR: s°-%. * 

* - ' ■ A y^r.' V A • 





* A <^ '<T.7» <G V '‘'/T.T 4 ' A 


^ * 

^ *4^*3**^ * 

0- ..". %'•••>.■ 

. -v *- ° A* y 

V*Cr 





w 


A 

° ® s \ y v > 

b A *'VLn ^ 

^ ^ :SMty‘ ^ o 5 



V^V° ...;**'' 

C\ aV *L<W> \> 

o V a* .Vfifev. •# 
» ■'W » 

^ V vf- ® ' 

» <^ v %<> ■> w e& w 



cf? vP ^ 

4 <L V ^V/a *> ^ . # - ^ ^ 

4 ,<y \ A <, '«.»’* A 

qV 6 o * a + "^q a 1 ^ . t » e ^ *£>. QV ( 

G • cS^^wv* 1 . o ♦ Vs, G • 

* Xp * ' < 



o «5 o* 

- o % 

3 y v- 

v. > *< 

«• cP ^f> -» 

4 v ^> k o 

4 V ^ 






> !?V 

°« 0 ' A' . ^ ^ ® r 1 * ^ ^ ^ 

* A. *■ - ^ 5i • «p. yOfr V <► 

AT ♦ 0 ^ “ v 

y*\ x • *® ° 

• A V^ ; 

■* o 


•, * 


b 




, <yVY//yP > a ^ 

V- ‘^ *’ *° ^ % 

V. A> < • ♦ * r 

* - K. 5» .• ,A 

** A * 

°* a ° 

*''VA* A '»•»■* Ay *cy vf!s« A <!\ ■'o, A G^ 

•sfi3»V ■'•o 5 3 bi. i t£m&» v 0 < «V 

i? V, .«5 V ’yy&mS' i? V «-%iyi'?*’« «5 V " ^ 

>° v*^ 3 '/ %^y"' / °o.‘ 



* - 
4 -V ^ 








/ ^ ‘ 



VJ 



. •>* %•••„ 

^ V * Y# °* o. J) * 

^ ^ AM A % c# ‘ 

* # ^ 


o > 


<0 * 7 * 

> V <4* * 

* r\ ^*. ^ 

** cv *b * 


/ • ♦ s 


? o 



; A v«* * 

* <y *$> » 





4> , % '* • * * ^ V' ‘ 

1# ^ .(T G° M °* ^O <^ V . t*- ^ 

^ ^ \M1^> % % < c ‘’^Mk- ° ^ t#mk\ %, s 

° v rlaflif: t 0< • < ’^^S" ’imSp* ^o* ^ 

*• ^ ’Azzm#' i° ^ ‘•^^•’ «5 <3* *«* 

’ .-, < V°”°\^ °* '••’** f° ^ '* o^' ^ 

* ^ V ***°* <?. < 0 V **••'* ^ * > 

. ^ A v ^¥/k° ^ <$> *¥WD&* 

■ v<^ v 


f> 




«* C,^ ^rv -*• 

* ,<y * 

.0 o *'.,! 

,d* ,•!*. •*£> 

V 


; * 

° A V ^ o 
* <y o 





<C^ V * i 0 * 7 *. * 

nt * r. * ** \ 

? r O A, tZYVJf<& * r\ *&* * 

°* ‘•-•’a 0 ._ ^ ' 


J.V .'•'»< V. 

.4* ♦Wfc£' ^ 

»b $ - ’ 



- c£ •* 

4 * V ^ * 



^0* 


b 1 ^ o ° " ® * ^o <& 

0 ♦ o < 1 ^ * 



<n ^ 4*^ 


oV 


* Pt 1 , 

v v' c£a ^ 

^ Q o» 



^ o. 

^OWO 0 ^ O + at ^» A- 

CV <<y s s * a 

° C/ ^ 

° °Jp V 

,V^> 4 

,* . ^ ^ \ 

<\. 

A o »■ ' « <- 

^ ^ \N ^ ^rtl//y^> ' r J r . 


\ % - y / 







o # A 





: <h o^ * ^ 

^ vy ^ c 

^O ^ 

° w 0 -t - ^ 

>*■ ^ V * l,* °* 

w 


o ‘0- > %<> 

v «y 

& * o „o° <P 

b> v P * • o* o 

^ ^ ,V<WV, tft ^ 

v {a o ^Li 

i .0^ ««“•* "^o j^ v .^*4 ^ o^ ^--, o 

^d* r«^ta£ ^ " * rfSSW# 


- /9 vP j 

>4 <L V *> 





o 

A o. I 
!<■ ^ 

o 

o. aO 

KR 51 • ^^ 

« = 



40 + l 

& * 

<5 ^ O ^ 

<# °^. *'•'■>* 
v «i •»' ^ 

^ A <& * 

» - < ’ J '- -^6^« * 



*° ^ ^ °«y^^* <a ~'\ *- 

, f\.^%' m -'\r,....%£‘™ % 'J ...., V'”‘‘ 0 b t 

^ ^jjt/rdTTpA^ 'y. > ^ ° < 4®’ ■^^■ f (J?7p->* rsr C * c 

-JmZZ’S. •#>_*. ft-? og^ ^| “ ^ ,'iS^^* ■ 

* jP-tj. Qft v^ 

• *»- ■■ 



o V 
\0 ^ 

n. ^ , xv _ 

^ ^ A' c - * cnV ^ 

... % •' • A? ,.„ ^ *'’ * f° ,.., <■?> 

' ••' "• V - R a ' ^ iVQte**. ••■" "■' » 


% ■& * 

vr*V 

4 Kf? ^ * 


^0 V -G°*°» 

























1 United - States • Food 
■Administration • 

Laws • and • Rulings 


PREPARED BY THE 

Corporation • legal ■ department 

OF 

COMMERCE CLEARING HOUSE / 


Commerce Clearing House 
C hicago New York 


C b f»tj 2. 





Copyright, iqi8 
by 

William KixMiller ^ 


4 


OCT -5 1918 



Press of Hillison & Etten Co., Chicago 


©CLA503720 








PREFACE 


T HIS work is primarily a compilation of all rules 
and regulations promulgated under the Food 
Control Law enacted August io, 1917, entitled 
“An Act to Provide Further for the National Security 
and Defense by Encouraging the Production, Con¬ 
serving the Supply and Controlling the Distribution 
of Food Products and Fuel.” Substantially all busi¬ 
nesses which have to do with the manufacture, storage 
and distribution, including buying and selling of food 
commodities, are controlled in their operation by this 
law. 

The object of this publication is to meet the de¬ 
mand for a definite, classified manual containing all 
regulations, rules and legal interpretations affecting 
businesses under this law. If this volume will result 
in a better understanding of this great law and the 
regulations, it will have accomplished the publishers’ 
purpose. 

It is the patriotic duty of every American citizen 
to co-operate in every respect with the Food Adminis¬ 
tration, which has accomplished remarkable results. 
Each person affected by these rules should observe 
faithfully all their requirements. By so doing he is 
assisting the Government in the successful prosecution 
of the war. 

Commerce Clearing House Bulletin Service will 
keep all licensees promptly informed of any changes 
from time to time in the within rules. 


August 23, 1918. 


TABLE OF CONTENTS 


CHAPTER I 

Page 

Introductory—Origin of the Law.i 

CHAPTER II 

General Nature of Licenses.8 

CHAPTER III 

Constitutionality of the Law.20 

CHAPTER IV 

General License Regulations.27 

CHAPTER V 

Special Rules and Regulations.38 

CHAPTER VI 

United States Statutes and Presidential Promulgations . . 200 

Index.244-251 









CHAPTER I 


INTRODUCTORY 

Origin of the Law. 

The Food Control Law is a war measure. It is, without ques¬ 
tion, one of the most important, far-reaching statutes ever en¬ 
acted by Congress, affecting, as it does, every citizen in this 
country and most of those in Europe. The President has stated 
that “This bill is one of the most important and most impera¬ 
tively necessary of the measures which have been proposed in 
connection with the war.” War creates its own necessities pro¬ 
portioned to the circumstances. The great national necessity / 
which demanded immediate legislative action was shortage in! 
the world *s food supply. A sufficient and regular supply of food 
is an absolute necessity for the maintenance of our own armies 
and that of our fighting allies for the successful prosecution of 
this war for liberty. Abnormal conditions, arising out of the 
war have made nugatory those commercial and economic forces 
which ordinarily control the flow of commerce and the conse¬ 
quent prices of food products. Both the Food and Fuel situa¬ 
tion had grown so acute that action of some kind by the Federal 
Government was imperative. 

The principle and the entire system of food control legislation 
is practically new to this country and in some respects contrary 
to its principles of government. During normal conditions leg¬ 
islation affecting the control of food supplies has been rare. 

Food Control in European Counties. 

Practically all European countries had control of the distribu¬ 
tion and consumption of food commodities at the time of the 
proposed legislation in this country. Laws have been generally 
enacted in practically all countries prohibiting the export of food 
and materials suitable in any respect for war supplies. These 
rules and regulations which have been enacted from time to time 
by the European countries, have necessarily become more drastic 
as the war continues. 

Germany. 

Germany has requisitioned food, fixed prices and even ra¬ 
tioned the supply. Their plan has been to delegate wide and 


l 


practically unlimited authority to administrative departments. 
This was done at the very beginning of the war. Today the 
entire power of control, production, distribution and consump¬ 
tion of all food commodities in Germany is vested in adminis¬ 
trative bodies. The food problem in Germany as well as in 
Austria was, of course, different from that of other countries 
inasmuch as these countries were cut off from their chief sources 
of supply. At the very beginning of the war they fixed prices 
of foods. As early as February, 1915, the government took over 
practically all of the grain and flour supply which were rationed 
out to various localities in proportion to their population. A 
food dictator has practically direct control of all food commodi¬ 
ties in that country at the present time. These commodities are 
taken by the government from the producers and allotted to the 
consumer through a system of ticket distribution. 

Austria-Hungary. 

In Austria-Hungary conditions are, of course, very similar to 
those in Germany and their system of regulation, etc., has been 
not substantially dissimilar to the present system in Germany. 

Great Britain. 

Great Britain has placed this control in the hands of one man 
who is known as the Food Controller. As early as August, 1914, 
legislation was passed providing: 

“If the Board of Trade are of the opinion that any food¬ 
stuff is being unreasonably withheld from the market, they 
may, if so authorized by His Majesty’s proclamation (made 
generally or as respects any particular kind of foodstuffs) 
and in manner provided by the proclamation, take posses¬ 
sion of any supplies of foodstuffs to which the proclamation 
relates, paying to the owners of these supplies such prices 
as may in default of decrement be decided to be reasonable, 
having regard to all the circumstances of the case by the 
arbitration of a judge of the higher court selected by the 
Lord and Chief Justice of England.” 

Soon after the outbreak of the war the exportation of food 
products was prohibited. From time to time conditions have 
made necessary the enactment of more drastic laws and the 
adoption of more strict regulations thereunder regarding the 
supply and prices of foods of all kinds. The Food Controller has 
been granted very broad powers, particularly with respect to 
the requisitioning and price-fixing of food commodities. He is 
empowered to make orders controlling the distribution, storage, 
manufacture, production, transportation, purchase and sale, con- 


sumption and use of almost any article of food. He is, strictly 
speaking, a food dictator. His authority being on a parity with 
that of the Admiralty or Ministry of War. 

France. 

In France food control is in the hands of a committee. At 
an early date maximum prices were established by food author¬ 
ities in Paris and other cities. Like the other countries, expor¬ 
tation of food commodities was prohibited. Legislation was 
enacted and regulations passed thereunder to stimulate the pro¬ 
duction of food commodities of all kinds. 

In 1916 a law was enacted authorizing the Government to fix 
the maximum prices for a number of commodities. Later a 
ministry of food supplies was created and regulations more and 
more strict have been passed from time to time by the ministry 
of foods. They also have the system of rationing certain com¬ 
modities by cards, as exists in many of the other countries of 
Europe. 

Italy. 

The food control in Italy is in the hands of a committee. This 
country was also among the first to take steps to conserve the 
food supply and regulate prices thereof. There was legislation 
also prohibiting the exportation of food commodities. As early 
as 1916 a decree authorized the ministers of agriculture and of 
the interior power to fix the maximum prices for all necessities. 
Subsequent legislation has been of such broad and far-reaching 
effect that practically all food commodities are under the super¬ 
vision and control of the committee. 

Food Control in Neutral European Countries. 

All belligerent nations and practically all of the neutral Euro¬ 
pean countries have food control in some form or another. The 
countries of Holland, Denmark, Norway, Sweden, Switzerland, 
Spain, Portugal, Egypt and South Africa have passed drastic 
measures regulating the distribution, production, manufacture, 
purchase and sale, etc., of food commodities and other war 
necessities. 

It has generally been found that the most satisfactory manner 
of handling this situation was through administrative bodies to 
whom very broad powers have been delegated by legislative 
bodies. 

Object of the Food Survey Law and Food Control Law; Scope of the 
Law. 

On August 8, 1917, Congress passed the Food Control Bill 

3 


entitled “An Act to Provide for the National Security and De¬ 
fense by Encouraging the Production, Conserving the Supply 
and Controlling the Distribution of Food Products and Fuel.” 
On August 10th the bill was signed by President Wilson. The 
bill was introduced in the House on June 11, 1917, by Congress¬ 
man Lever, Chairman of th'e House Agricultural Committee, 
on August 10, 1917, President Wilson also approved the Food 
Survey Law, passed by Congress, which is entitled “An Act to 
Provide Further for the National Security and Defense by 
Stimulating Agriculture and Facilitating the Distribution of 
Agricultural Products.” This law authorizes the Secretary of 
/Agriculture to investigate in detail the actual food situation in 
the country and to employ various means for increasing food 
production, such as furnishing seed, demonstrations and educa¬ 
tional work. The work under this law does not come under the 
immediate control of the Food Administration, but is a matter, 
of course, in which the Food Administration is vitally interested. 

The Food Survey Law, requiring a survey of the national food 
resources, aids in the execution of the Food Control Law, which 
law gives the Government absolute control of the food of the 
country and its distribution. Pursuant to the power contained 
in the Food Survey Law, the Chief of the Bureau of Markets 
of the United States Department of Agriculture has been 
authorized and instructed as an agent of the Secretary of Agri¬ 
culture to take such steps as may be necessary to obtain authori¬ 
tative information regarding the matters authorized therein. 

The Food Control Act does not give the Food Administrator 
any specific authority to stimulate production. This is the 
scope of the law referred to above, as the Food Survey Law. 
The agency under which it carries out its object is the Depart¬ 
ment of Agriculture. Bills are now pending in Congress, amend¬ 
ing the Food Control Law. There is a bill now in Congress, 
known as H. R. 9971. The title of the bill says it is an act to 
“Provide further for the National Security and Common De¬ 
fense by Conservation of Food Stuffs, Feeds and Materials 
necessary for the production, manufacture and preservation of 
food stuffs and feeds. ’ ’ This bill is intended to be supplemental 
to the Food Control Act of August 10, 1917, and has apparently 
for its purpose a greater effectiveness in the methods of the 
conservation and equitable distribution of food stuffs and feeds. 
Under the Food Control Law the President is not empowered 
to enforce economy in the consumption of foods and feeds. This 
bill empowers the President to bring about the maximum conser¬ 
vation of food by methods specifically set out in the terms of 
the bill itself. 


4 


Mr. Hoover, in his statement before the Senate Agriculture 
Committee, said: 

“Our conception of the problem in the United States is 
that we should assemble the voluntary effort of the people, 
of the men who represent the great trades; that we should in 
effect undertake with their co-operation the regulation of the 
distributing machinery of the country in such a manner 
that we may restore its functions as nearly as may be to 
a pre-war basis, and thus eliminate so far as may he the 
evils and failures which have sprung up. And at the same 
time we propose to mobilize the spirit of self-denial and 
self-sacrifice in this country in order that we may reduce 
our national waste and our national expenditure. 

‘ ‘ If democracy is worth anything, we can do these things 
by co-operation, by stimulation, by self-sacrifice, by the 
patriotic mobilization of the brains of this country. If it 
can not be done in this manner, it is better that we accept 
German domination and confess the failure of our political 
ideals, acquiesce in the superiority of the German conception 
and send for the Germans to instruct us in its use. At the 
same time, while we may rest with assurance upon the 
volunteer support which we shall receive and which we are 
receiving from hundreds of trades throughout the country, 
there is no population so perfect, so filled with idealism, 
that there is not some residue who will refuse to co-operate 
and thereby nullify every endeavor of the majority. There¬ 
fore, it is necessary to have considerable powers for the 
regulation of trade in order that we may give support to 
those patriotic men who are willing to.bend their energies 
to the national necessity and force the minority to follow 
their leadership.” 

Congressman Lever, Chairman of the House Agriculture Com¬ 
mittee, in introducing the Food Control Bill, stated as follows, 
concerning its intent: 

“It aims to facilitate and clear the channels of distribu¬ 
tion, to prevent hoarding; to prevent wilful destruction of 
necessaries in order to enhance the price or to restrict the 
supply thereof; to eliminate injurious speculation; to regu¬ 
late exchanges and boards of trade in order to prohibit 
undue fluctuation of prices, unjust market manipulation, 
or unfair or misleading market quotations; to reduce waste, 
including power to regulate or completely to prohibit the 
use of cereals in the manufacture of alcoholic beverages, and 
to stimulate production by securing the farmer a reasonable 

5 


profit guaranteed by the Government and a free and open 
market for his products, unrestricted by manipulation and 
uncontrolled by gambling operations.’’ 

President Wilson stated that the objects sought to be served 
by this law were: 

“Full inquiry into the existing available stocks of food¬ 
stuffs and into the costs and practices of the various food 
producing and distributing trades; the prevention of all 
unwarranted hoarding of every kind and of the control of 
food-stuffs by persons who are not in any legitimate sense 
producers, dealers, or traders; the requisitioning when neces¬ 
sary for the public use of food supplies and of the equipment 
necessary for handling them properly; the licensing of 
wholesome and legitimate mixtures and milling percentages, 
and the prohibition of the unnecessary or wasteful use of 
foods. 

“Authority is asked also to establish prices, but not in 
order to limit the profits of the farmers, but only to guar¬ 
antee to them when necessary a minimum price which will 
insure them a profit where they are asked to attempt new 
crops and to secure the consumer against extortion by break¬ 
ing up corners and attempts at speculation, when they occur, 
by fixing temporarily a reasonable price at which middle¬ 
men must sell.” 

He has also stated that “the object of the measure is not to 
control the food of the country, but to release it from the control 
of speculators and other persons who will seek to make inordinate 
profits out of it and to protect the people from the extortions 
which would result.” 

Creation of the Food Administration; Appointment of Food Admin¬ 
istrator. 

President Wilson, on the same day he signed the Food Control 
Bill, appointed Mr. Herbert Hoover to be head of the Food 
Administration, with the title of Food Administrator. The Food 
Administrator has been given the task of administering the food 
control provisions of the law. The Food Administration is 
nowhere specifically mentioned in the Act. The authority, how¬ 
ever, of the President for enlisting the aid of the Food Admin¬ 
istrator, is found in Section 2 of the law, which provides that 
the President is authorized to enter into any voluntary arrange¬ 
ments or agreements, to create, and use any agency or agencies 
and to accept the services of any person without compensation. 
The task of the Food Administrator has been called “building 

6 


the food machine.’’ For the accomplishment of this task the 
Food Administration has relied largely on the patriotic co-oper¬ 
ation of the American people. 

There is a great difference between the manner in which an 
imperial government, such as Germany, has regulated and con¬ 
trolled the food supply as distinguished from that of a demo¬ 
cratic form of government, as illustrated by the policy of the 
United States. In one case there have been drastic decrees pre¬ 
scribing the amount of food which its subjects may purchase 
and consume, requiring them to secure tickets from the govern¬ 
ment in order that they may get the food they require. The law 
in this country does not confer food dictatorship—on the other 
hand, the basis of its power lies in the patriotic co-operation of 
the American people. 


"1 




7 


CHAPTER Ii 


LICENSES 


Authority of the President of the United States to License Necessaries. 

The Food Control Law provides for the establishment of 
Government control of certain necessaries during the war with 
the view of preventing scarcity, monopolization, hoarding, injuri¬ 
ous speculation, manipulation, and private controls affecting the 
supply, distribution, and movement of such necessaries. 

The President is authorized under Section 5 of the Law to 
license the importation, manufacture, storage, mining, or distri¬ 
bution of any necessaries and to make such regulations as would 
be essential effectively to carry out the provisions of the Law. 
This licensing provision of the law is limted in operation to those 
trades or channels of trades which lie between the farmer and 
the retailer, with the exception that it does extend to retailers 
doing an annual business of more than $100,000. 

Who Is Required to Secure a License. 

The President, pursuant to the powers conferred upon him by 
Section 5 of the Act, has from time to time issued proclamations 
requiring different classes of food manufacturers and handlers to 
take out licenses. He has, also, issued proclamations requiring 
importers, manufacturers, storers, or distributors of fertilizers, 
feeding stuffs, and farm implements, and operators of stockyards 
and commission men, to secure a license. Under these proclama¬ 
tions, licenses are required for the following persons: (These 
proclamations are continued on page 221 and pages following.) 

(A) All persons, firms, corporations and associations engaged 
in the business of operating a cold storage warehouse (a cold 
storage warehouse being defined as any place artificially or 
mechanically cooled to or below a temperature 45 per cent above 
zero Fahrenheit in which food commodities are placed and held 
for thirty (30) days or more). 

Lessee. 

Note.—A person renting a room or rooms in a cold-storage warehouse is 
subject to license as a cold storage warehouseman if the lessor has no con¬ 
trol over the goods stored therein. 


8 


Foreclosing Lien. 

A cold storage warehouseman is not required to have a wholesaler’s or 
jobber ’s license to sell stored goods in order to protect a loan that is secured 
by a lien on said goods. 

Combined, Public and Private. 

A cold storage warehouseman who classifies himself as a combined public 
and private cold storage warehouseman and obtains a license as such, thereby 
becoming entitled to own commodities that are stored in his warehouse, 
must also be licensed as a dealer if he deals in any commodities that are 
licensed commodities, and must observe the rules and regulations governing 
dealers. 

(B) All persons, firms, corporations and associations engaged 
in the business of importing, manufacturing or distributing 
wheat flour or rye flour, barley flour, oatmeal or rolled oats, corn 
grits, commeal, hominy, corn flour, starch from corn, corn syrup 
or glucose, com oil, dried beans, rice flour, pea seed or dried peas; 
cotton seed oil, or peanut oil, or peanuts, copra, soya bean meal, 
soya bean oil, palm oil, copra oil, palm kernel, palm kernel oil, 
oleomargarine, lard, lard substitutes, oleo oil or cooking fats, 
milk, butter or cheese, condensed, evaporated or powdered milk, 
fresh, canned or cured beef, pork or mutton, poultry or eggs 
(fresh, frozen or cold storage), fresh or frozen fish, fresh fruits 
or vegetables (including Irish or sweet potatoes, lemons, oranges, 
berries), canned tomatoes, canned corn, canned peas, canned 
dried beans, salmon or sardines, canned tuna, dried prunes, 
apples, peaches or raisins (excluding dried black grapes and 
currants), sugar, syrups or molasses (excluding beverage or 
medicinal syrups and rock candy). 

Note. —The commodities above specified as Fresh, canned or cured beef, 
pork or mutton, include veal, lamb, ham, canned corn beef, chipped beef, 
dried beef, sliced bacon, whether in containers or not. They do not include 
the distribution of beef juice, bologna, canned chile meat, corn beef hash, 
deviled ham, luncheon tongue, mince meat, potted meats, sausage, scrapple, 
tripe and veal loaf. 

Distribution of Tomato Products. 

The distribution of catsup, chili sauce, tomato soup and like 
tomato products is not subject to a license. 

(C) All persons, firms, corporations and associations engaged 
in the business of importing, storing, distributing or manufac¬ 
turing (including milling, mixing or packing) any of the fol¬ 
lowing commodities: Wheat, rye, corn, oats, barley, beans, rice, 
cotton seed, cotton seed cake, cotton seed meal, peanut meal, malt. 

(Note. —Those dealing in any of the commodities mentioned 
in Section “B” or Section “C” on an exchange or board of 
trade or similar institution as defined by Section 13 of the Act 


9 


of August 10, 1917, are not subject to license to the extent of 
their dealings on such exchange or board of trade.) 

(D) All persons, firms, corporations and associations engaged 
in the business of importing, storing, distributing or manufac¬ 
turing cotton seed hulls. 

.(E) All persons, firms, corporations and associations engaged 
in the business of: 

(a) Importing, storing, distributing or manufacturing 
(including mixing and processing of all kinds) any commer¬ 
cial mixed feeds (including dairy feeds, horse and mule 
feeds, stock feeds, hog feeds and poultry feeds). 

(b) Manufacturing feeds from any of the following com¬ 
modities or importing, storing or distributing any of the 
following commodities as feeds or feed ingredients: Buck¬ 
wheat, kaffir, feterita, milo, broom com, cane seed, baled 
alfalfa, malt sprouts, spelt, baled hay, dried yeast grains, 
emmer, millet, baled straw, animal or fish products or by¬ 
products, grain and seed screenings, lentils, linseed oil cake, 
linseed oil meal, tankage, dried brewers’ grains, beans, peas, 
sunflower seed, dried distillers ’ grains. 

(c) Importing, manufacturing, storing or distributing as 
feed any product or by-product of any of the following 
commodities: Shelled corn, ear corn, oats, barley, wheat, 
rye, velvet beans, buckwheat, sorghum grains, rice, grain and 
seed screenings, soya beans, peas, peanuts, copra, palm nut, 
palm kernel, sugar beets, sugar cane, hay, alfalfa, straw. 

Note. —Cottonseed feed or cottonseed feed meal, which is a mixture of 
cottonseed hull brand and cottonseed meal, is a “commercial mixed feed,” 
therefore a licensed commodity. 

(F) All salt water fishermen, whether fishing independently 
or on shares, engaged at any period of the year in the commercial 
distribution, including catching and selling, of any and all vari¬ 
eties of salt water fish, including menhaden, and of shell fish and 
crustaceans. 

(G) All persons, firms, corporations and associations engaged 
in the manufacture for sale of cake, biscuits, pastry or bread in 
any form or other bakery products, whose consumption of flour 
and meal in the aggregate is three barrels or more per month on 
an average throughout the year. 

Note. —A university , college or school that is not conducted by the United 
States or by a state or political subdivision thereof, and which is not a 
charitable institution, is required to obtain a baking license if it operates 
a bakery that consumes the quantity of flour and meal above specified. 

Foreign passenger and freight ships may obtain licenses. 

Boarding houses using the quantity of flour and meal above specified are 
required to secure licenses, this is also true in the case of commercial and 


10 


industrial institutions serving meals to employes as for example lumber, 
mining and contracting companies. 

Charitable Institutions , whether public or private, are not required to 
obtain a baking license inasmuch as they do not manufacture bakery prod¬ 
ucts “for sale.“ A Young Men’s Christian Association is not, however, 
a charitable institution. 

(H) All persons, firms, corporations and associations engaged 
in the business of packing mild cured, hard cured, salted, dried, 
smoked, pickled or otherwise preserved salmon. 

(I) All persons, firms, corporations and associations engaged 
in the business of manufacturing alimentary paste. 

(J) All persons, firms, corporations and associations engaged 
in the business of manufacturing fermented beverages containing 
less than one-half of one per cent alcohol. 

(K) All persons, firms, corporations and associations engaged 
in the business of importing or distributing green coffee. 

Note. —The following classes were subjected to license: 

Persons, etc., importing green coffee, whether or not they roast it before 
disposing of it. 

Wholesalers, jobbers, roasters, and all others who buy or otherwise deal in 
green coffee, whether or not they roast it before disposing of it. 

Retailers who buy or otherwise deal in green coffee, whether or not they 
roast it before disposing of it, whose total gross sales of all food or feed 
commodities exceed $100,000 a year. 

In other words, all persons, firms, corporations and associations who im¬ 
port, and all others (except retailers whose gross sales of food or feed com¬ 
modities do not exceed $100,000 a year), who buy or otherwise deal in or 
handle green coffee, are required to obtain a license. 

(L) All persons, firms, corporations and associations engaged 
in the business of manufacturing tomato soup, tomato catsup or 
other tomato products. 

Note. —See note under B supra as to distribution of catsups, etc. 

(M) All persons, firms, corporations and associations engaged 
in the business of importing, manufacturing, storing and distrib¬ 
uting fertilizers and fertilizer ingredients. 

(N) All persons, firms, corporations and associations engaged 
in the business of importing, manufacturing, storing and distrib¬ 
uting farm equipment, including attachment and repair parts 
thereof, required for farm use in the actual production of foods 
and feeds. 

(O) All persons, firms, corporations and associations engaged 
in the business of operating stockyards and commission men 
operating in connection with stockyards are required to secure 
license on or before July 25, 1918. 


11 


SPECIAL EXCEPTIONS 

The following persons, firms, corporations and associations are 
excepted from having licenses: 

(1) Retailers doing a strictly retail business whose gross 
annual sales of all food commodities do not exceed $100,000 are 
not subject to license on their retail activities. 

Note.—A retailer, i. e., a person whose business is selling food oommodi- 
ties to individual consumers, is not required to obtain a license in order to 
make sales to hotels, restaurants, boarding houses, hospitals, schools, and 
other large consumers of similar character, unless his total gross sales of food 
and feed commodities to both individual consumers and hotels, restaurants, 
etc., exceed $100,000 a year. 

Vendors to Hotels, Restaurants, Hospitals, Etc. 

Persons who are exclusively engaged in the business of selling licensed 
food commodities to hotels, restaurants, boarding houses, hospitals, schools 
and other large consumers are wholesalers and are required to be licensed as 
such, irrespective of the volume of business. An intermittent or occasional 
sale at retail to an individual customer would not be taken to mean that 
the dealer is not exclusively engaged in the wholesale business. 

What Retailer May Disregard in Computing His Sales. 

A retailer whose gross sales of all food commodities exceed $100,000 is 
subject to a license if he handles any one of the controlled commodities not¬ 
withstanding the fact that his total sales of licensed commodities may be 
less than $100,000 a year. In estimating his sales, he may disregard articles 
that are not food commodities, as, for example, wooden ware, matches, and 
kerosene. 

Retailers Who Are Not Required to Secure License. 

All retailers are subject to the various provisions of the Food Adminis¬ 
tration Law with the exception of those doing a business of $100,000 a year 
or less in food commodities are not required to be licensed. They must, 
however, observe all the provisions of the Law. The Food Control Act gives 
no regulatory powers with regard to retailers. There is an indirect control 
over these parties in that any licensed dealer is prohibited from dealing 
with any person who does violate the law or any of its regulations thereun¬ 
der. Therefore, the source of supply of the retailer who violates the rules 
and regulations may be cut off by the enforcement of this provision in the 
law. 

Retailers Who Buy Eggs and Poultry from Farmers. 

There are many country storekeepers whose business is mostly retail sell¬ 
ing, but who buy eggs and poultry from farmers. They are operators of 
poultry and egg packing plants in such case and they are required to secure 
a license although their retail business is not large enough to require a 
retailers license. 

Peddlers. 

Peddlers buying from wholesalers and selling to the retain trade in whole¬ 
sale quantities are required to secure a license. This also applies to huck¬ 
sters buying from the producer and selling to collectors of produce. The 

12 





wholesale meat peddlers are also included. They are not retailers and total 
amount of their sales of licensed food commodities is not determinative of 
the necessity to obtain a license. 

Regulations of prices charged by retailer, see page 12. 

(2) Common carriers as to the operations necessary to the, 
business of common carriers. 

Note.—A common carrier is not required to obtain a license in order to 
sell at wholesale or retail, spoiled, damaged, rejected, or unclaimed licensed 
food commodities that have come into the possession as an incident of its 
business as common carrier. 

An express company that solicits shipments of food commodities and 
issues quotations for the information of sellers and buyers, but which does 
not deal in food commodities or receive any revenue from dealings in such 
commodities, its ordinary transportation charges being the only earnings 
it makes in handling such commodities, is not subject to license. 

(3) Farmers, gardeners, co-operative associations of farmers 
or gardeners, including live stock farmers and other persons 
with respect to the products of any farms or gardens owned, 
leased or cultivated by them. 

(4) Millers of corn, oats, barley or rice, operating plants with 
a daily capacity of less than 75 barrels. 

(Note. —This exception does not apply to manufacturers, mixers or grind¬ 
ers of any kind of FEED mentioned above.) 

(5) Canners of peas, dried beans, corn, tomatoes, salmon or 
sardines whose gross production does not exceed 500 cases per 
annum, except all home canners and bonafide boys and girls’ 
canning clubs recognized by the Department of Agriculture of 
the several states in the United States. 

(6) Manufacturers of maple syrup, maple sugar or maple 
compounds. 

(7) Ginners, buyers, agents, dealers or other handlers of 
cotton seed who do not handle more than 20 tons of cotton seed 
between September 1 and August 31 in any given year. 

Note.—C otton seed that a person receives as rent or otherwise from a 
tenant must be included m determining whether such person is subject to 
license by reason of his dealing in or handling more than 20 tons of cotton¬ 
seed a year. 

Ice. 

The Law Department of the Food Administration has ruled 
that the manufacture and distribution of ice comes under the 
Food Control Act. The Food Administation is concerned that 
there shall be no profiteering on ice, and that the cost of ice to 
those elements of the community which are least able to protect 
themselves should not be increased over last year unless absolute 
proof can be given by the ice companies as to the necessity. Any 

13 


such increase in price will justify investigation as to whether it 
constitutes profiteering. 

All ice dealers will he required to file with the Federal Food 
Administrator a schedule of increased prices before such increases 
are put into effect. Therefore, no increase to household con¬ 
sumers should be made by ice companies until after investigation. 

The Food Administration has not as yet put under a license 
this class of business. No doubt if the ice industry should not 
comply with the spirit of the Food Administration, it would use 
its power to put the ice business under a license. 

In general, ice manufacturers should be careful to see that 
their profits should not exceed pre-war profits. Those dealers 
who make short weight in deliveries will, of course, be sharply 
dealt with. The Food Administration has announced that by 
buying ice on the cash and carry plan at the platform, consumers 
should obtain at least 60 per cent more ice than for the same price 
delivered. 

The Food Administration is making a careful survey of the 
ice situation in order that it may be in a position to meet any 
conditions which might arise. 

Questionnaires have been sent to all ice producers with the 
view of enabling the Administration to acquire information which 
would put it in a position to be of assistance in the event of any 
sudden shortages in particular communities. 

Commodities in Package or Bulk or Sold under Trade Names Included. 

If a given commodity is named among the licensed articles in 
the proclamations, it is included within the licensing program 
whether in package or bulk or even though sold under a private 
brand, coined name, or proprietary trade mark; for example: 
All cooking fats, all oatmeal, and all rolled oats are included 
even though sold in packages under private brands. 

All Sales Made After August 10, 1917, Subject to the Law and Reg¬ 
ulations. 

The statute is applicable to all sales made after the law was 
passed on August the 10th, 1917, and the regulations are applic¬ 
able to all sales falling within the license program, notwith¬ 
standing the fact that the particular goods in question may have 
been purchased many weeks, months, or years before. 

Policy of Administration in Granting Licenses. 

The policy of the Administration, apparently, is not to inter¬ 
fere with the establishment of any new businesses or ventures, 
but to grant licenses to anyone applying for the same. These 
application forms to secure licenses may be obtained from the 


14 


Department of Food Administration, License Division, Wash¬ 
ington, D. C. All forms are furnished and the licenses are issued 
without cost to the applicant. The licenses are not transferable. 
Under a recent rule, a licensee must secure and attach to the 
application which is forwarded to the Food Administration at 
Washington, D. C., a certificate signed by the Federal Food Ad¬ 
ministrator of the State in which the business is conducted or 
is intended to be conducted. 

Penalties for Doing Business Without a License When One Is Required 
Dealing With Persons Violating Food Control Act, Prohibited. 

Section 5 of the Act provides that any person who, without a 
license, as prescribed by law or whose license has been revoked 
or suspended, shall knowingly engage in or carry on any business 
for which a license is required under the law shall be subject to 
a penalty of $5,000 fine or two years’ imprisonment, or both. 
General Rules 17 and 22 promulgated by the President under this 
law provide that a licensee must not knowingly deal with persons 
violating the Food Control Law and that a licensee must not 
knowingly deal with any person who is required to have a license 
and who has not secured the same. Where the licensee did not 
knowingly deal with persons violating the Food Law or any of 
the regulations issued thereunder and did not knowingly deal 
with anyone who is required to have a license and who had not 
secured same or whose license has been revoked or suspended 
and, if there was no reasonable cause to believe that such a party 
was in any way violating the law, there would be no violation 
of the law. However, where any doubt whatever exists, it is 
believed advisable to secure a written statement from the party 
with whom you are dealing or contemplating dealing to the effect 
that such party is not required by law to secure a license. You 
cannot, of course, shut your eyes to the facts and, notwithstanding 
such a statement, if you subsequently discover any information 
which indicates that any person is required to secure a license, 
your written statement from the person with whom you are 
dealing will not absolve you from a possible violation of the law. 

The Local Food Administrator. 

The Food Administration is loath to reverse or interfere with 
the decision of the local administrator imposing any penalty for 
violation of any of the rules or regulations. This is necessarily so. 
In the first place, the local administrator is in a position to 
acquaint himself fully with all the facts and circumstances sur¬ 
rounding the case. His information is first hand. Then, again, 
the proper enforcement of these rules and regulations must be 
largely left to the discretion of the local representative of the 

15 


administration if any attempt is to be made to carry out effect¬ 
ively the enforcement of all the provisions of the law and regu¬ 
lations thereunder. The Food Administration announced on 
June 11th that more than 800 penalties for violations of rules 
and regulations covering licensed dealers in foodstuffs have been 
imposed during the past ten months; that about 150 companies 
and individuals have been ordered to quit business in licensed 
commodities for a limited or unlimited period, and over 500 have 
voluntarily made a money payment, usually to the Red Cross, or 
have temporarily abstained from doing business rather than risk 
calling down more drastic penalties upon their heads. The Food 
Administration has no authority under the law to impose any 
fine. Its authority under the law is limited to a revocation or 
suspension of the license. All contributions, which are usually 
to the Red Cross, have been purely voluntary on the part of the 
payors. These payments, of course, are made at the suggestion 
of the Food Administration and are accepted in place of more 
drastic formal penalties. 

Procedure of Licensee Upon Violation of Regulations. 

The procedure which a licensee should follow upon notice of 
any violation of the rules or regulations of the Food Adminis¬ 
tration is to present his case fully to the local administrator 
having jurisdiction. If there has been an error or mistake or 
the facts have not been clearly and accurately presented to the 
local administrator, this should be done without delay by the 
alleged violator. If he has any defense, he should see to it that 
it is properly put before this local administrator, for, as stated 
above, when it is once referred to Washington, D. C., the head 
office would, undoubtedly, be loath to reverse a decision of a local 
administrator. After the revocation or suspension of a license, 
the licensee has the right, under the supervision of the Food 
Administrator, to wind up his business in dealing in licensed 
commodities. He, of course, would have no right to engage in 
new business and would lay himself open to prosecution if he 
did so. It is probable that in most cases a licensee, where his 
license should be revoked, would desire to apply for a new license 
or a re-issue of the old license. In such case, he should see that 
all of his transactions are strictly in accordance with the approval 
and order of the Food Administration. He should act with due 
diligence in the closing out or handling of his stock after a 
revocation of his license. After this takes place, he should act 
strictly under the order of the local Food Administrator in dis¬ 
posing of the food commodities on hand and performing his old 
contracts. 


16 



Agencies of the Government to Carry Out Its Licensing Program and 
the Enforcement of the Rules and Regulations. 

Section 2 of the law authorizes the President to enter into any 
arrangements or agreements to create and use any agency, to 
accept the service of any person, without compensation, and to 
co-operate with any agency or department of the Government 
in carrying out the purposes of this law. Under this section of 
the law, the Food Administration was created and Mr. Herbert 
Hoover was appointed as head of this Administration. / The 
Government has appointed in each State a Federal Food Admin¬ 
istrator to whom appropriate authority has been delegated by 
the Food Administrator at Washington for the enforcement of 
the laws and regulations and performance of such other services 
in this connection as may be deemed proper and necessary. There 
are, also, county, municipal, township and city food adminis¬ 
trators. These various administrators, particularly the county 
food administrator, have been delegated as full authority as 
possible. Practically all activities connected with food being 
centralized in them. 

In some cities ordinances have been passed regulating the'sale 
of food commodities; for example, the City of Memphis, Ten¬ 
nessee, has passed an ordinance which requires that every person 
secure a license who is engaged in the business of selling, storing 
or offering for sale any article of food in that city. Such ordi¬ 
nances, if in contravention with the Food Control Law or any 
rule or regulation made thereunder, would, of course, be void. 



EXPORTS 

The rules and regulations do not apply to export sales, but 
they do include sales to persons within the United States even 
though the purchaser is an exporter, as, for example, an export 
commission house. The exporter is required to have a license and j 
is governed by the rules and regulations in so far as his purchases 
are concerned. Contracts, of course, for the sale of commodities 
where the goods are to be delivered in a foreign country do not 
come within the purview of this statute or the rules or regulations 
thereunder. Persons within the United States who buy from or 
sell to persons in Porto Rico, the Philippines, or other possessions 
or territories of this country are governed by the rules and 
regulations. 

In those cases where export licenses are necessary, application 
for them should be made to the War Trade Bureau. 


17 



PENALTIES 


There are two methods by which the provisions of the Food 
Control Law may be enforced: 

1. Institution of criminal proceedings; seizure of hoarded 
food commodities; requisitioning of supplies, or taking over 
any plant where the same is necessary for the National 
security or defense. 

2. By administrative actions. 

The latter has heretofore been the method most generally used. 
There have been but few criminal proceedings instituted under 
the law. 

The Food Administration is an administrative body. The 
procedure it has adopted with reference to the accused is to give 
them an opportunity to be heard as to their guilt or innocence. 
After a hearing it is customary for the local administrator to 
summarize briefly in a report the facts and with his recommen¬ 
dations submit the same to the Enforcement Division at Wash¬ 
ington, D. C. If a licensee is found guilty of the charge, his 
license may be revoked or suspended, or the Food Administration 
may accept some action by the violator in lieu of such revocation 
or suspension; as, for example, a contribution to the Red Cross. 

In the case of non-licensees over whom the Administration has 
no direct control, the order is to licensees directing them to cease 
selling the non-licensees, either indefinitely or for a stipulated 
period. The granting of a license would, of course, be held up. 

Householders who are found guilty of hoarding food (i. e., 
having a quantity in excess of reasonable requirements for use 
or consumption by themselves and dependents for a reasonable 
time, which is in violation of Section VI of the Food Control 
Law), or where substitutes have not been purchased with wheat 
flour, subject themselves to libel proceedings or even criminal 
proceedings. 

In addition to the power of the Administration to revoke or 
suspend the license of any licensee, the following penalties are 
prescribed by the statute for a violation of the provisions of the 
Food Control Law: 

Section 5 provides that any person who, without a license, as 
required by law, or whose license has been revoked, knowingly 
engages in, or carries on, any business for which a license is 
required, or who wilfully fails or refuses to discontinue any 
unjust, unreasonable discriminatory and unfair storage charge, 
commission or practice, in accordance with the requirements of 
an order or any regulations prescribed, shall, upon conviction, 

18 


be punished by fine not exceeding $5,000, or by imprisonment 
for not more two years, or both. 

Section 6 provides that any person who wilfully hoards any 
necessaries is subject to a fine not exceeding $5,000, or imprison¬ 
ment for not more than two years, or both. 

Section 8 provides that any person who wilfully destroys any 
necessaries for the purpose of enhancing the price or restricting 
the supply is subject to a fine not exceeding $5,000, or imprison¬ 
ment for not more than two years, or both. 

Section 9 provides that any person who conspires, combines, 
agrees, or arranges with any other person to: (a) Limit the 
facilities for transporting, producing, manufacturing, supplying, 
storing or dealing in any necessaries; (b) to restrict the supply 
of any necessaries; (c) to restrict the distribution of any neces¬ 
saries; (d) to prevent, limit or lessen the manufacture or pro¬ 
duction of any necessaries, in order to enhance the price thereof, 
shall, upon conviction, be fined not exceeding $10,000, or im¬ 
prisonment for not more than two years, or both. 


19 


CHAPTER ili 


CONSTITUTIONALITY 

Basis of the Law. 

The power of Congress to pass the Food Control Law is to be 
found in the war clauses of the Constitution. The question of 
whether this statute can be justified as a constitutional measure 
in time of paece does not need consideration. 

The constitutionality of this law depends upon the following 
clauses of the Constitution: 

Section 8, Article I—“The Congress shall have power 
# * # 

To declare war, grant letters of marque and reprisal, and 
make rules concerning captures on land and water; 

To raise and support armies, but no appropriation of 
money to that use shall be for a longer term than two years; 

To provide and maintain a navy; 

To make rules for the government and regulation of the 
land and naval forces ; 

To provide for calling forth the militia to execute the 
laws of the Union, suppress insurrections, and repel inva¬ 
sions ; 

To provide for organizing, arming, and disciplining the 
militia, and for governing such part of them as may be 
employed in the service of the United States, * * * and 

To make all laws which shall be necessary and proper for 
carrying into execution the foregoing powers, and all other 
powers vested by this Constitution in the government of the 
United States, or in any department or officer thereof.” 

The Federal Government is one of enumerated powers. These 
powers, however, are not expressed in detail. It possesses not 
only those powers expressly given, but all those necessary and 
proper for the effective exercise of the powers enumerated. The 
scope of these implied powers of Congress is well expressed in 
McCulloch vs. Maryland, 4 Wheat., 316-421. 

“We admit, as all must admit, that the powers of the 
government are limited, and that its limits are not to be 
transcended. But we think the sound construction of the 


20 


constitution must allow to the national legislature that discre¬ 
tion, with respect to the means by which the powers it confers 
are to be carried into execution, which will enable that body 
to perform the high duties assigned to it, in the manner 
most beneficial to the people. Let the end be legitimate, let 
it be within the scope of the constitution, and all means 
which are appropriate, which are plainly adapted to that 
end, which are not prohibited, but consist with the letter 
and spirit of the constitution, are constitutional. ’ ’ 

Scope of War Power. 

In connection with the scope of the war power, the fact of the 
sovereignty of the Federal Government must not be lost sight of, 
and that so far at least as the war power is concerned, the United 
States has all the powers of a National Sovereignty. Mr. Justice 
Strong, in the Legal Tender Cases, 12 Wall 535, stated: 

“They tend plainly to show that in the judgment of those 
who adopted the constitution there were powers created by 
it neither expressly specified nor deducible from any one 
specified power or ancillary to it alone, which grew out of 
the aggregate of power conferred upon the government or 
out of the sovereignty instituted. ’’ 

The limitation which the clause above referred to imposes, is 
that the laws shall first be necessary, and, second, that they shall 
be proper. Chief Justice Gray, in the Legal Tender Cases, 110 
U. S. 440, stated: 

‘ ‘ By the settled construction and the only reasonable inter¬ 
pretation of this clause the words ‘necessary and proper’ 
are not limited to such measures as are ‘absolutely and 
indispensably necessary’ without which the powers granted 
must fail of execution, because they include all appropriate 
means which are conducive or adapted to the end to be 
accomplished, and which in the judgment of Congress will 
most advantageously affect it.” 

Congress is of necessity the exclusive judge of what is needed 
and proper when the means chosen conduce to the end and are 
not forbidden by the Constitution. 

McCulloch vs. Maryland, 4 Wheat. 316-413. 

Anderson vs. Dunn, 6 Wheat. 204. 

Ex parte Curtis, 106 U. S. 371. 

Congress has passed upon the question of the necessity of this 
legislation. The supply, conservation and distribution of all 
necessities are so vital to the success of this present war for liberty 
where it would seem that the very destiny of democracy is at 


21 


stake, that there can be no serious doubt arise in the mind of 
any person as to the necessity of this legislation. It would be 
superfluous to enter into any discussion of this. 

The question whether the means chosen are appropriate for 
the accomplishment of a constitutional purpose and not forbidden 
by the spirit of the Constitution has been determined by Con¬ 
gress. The determination of this question by Congress, of course, 
is subject to review by the courts. The extent to which the 
Supreme Court has gone in holding statutes valid which were 
enacted by Congress pursuant to its express powers, is illustrated 
by the cases of 

McCulloch vs. Maryland, supra; 

Stewart vs. Kahn, 11 Wall. 493. 

This law is a war measure. As was stated in the Legal Tender 
Cases, supra, Congress has passed this act as a necessity of war. 
Therefore, whether the power is an express or implied one, really 
makes no difference. 

Limitations of the Constitution. 

Those who seek to question the constitutionality of this statute 
will probably rely largely on the fourth and fifth amendment to 
the Constitution in that the act authorizes unreasonable searches 
and seizures and deprives a person of his property without due 
process of law; takes private property for public use without just 
compensation and compels a party to be a witness against himself. 

The question may also arise as to whether this statute is 
unconstitutional, as being in violation of Article I, Section I 
of the Constitution, in that it takes legislative power away from 
Congress and vests it in the President. In this connection 
attention is called to the following cases where the courts have 
sustained the constitutionality of statutes involving taking prop¬ 
erty even under more drastic provisions than contained in this 
statute: 

United States vs. American Tobacco Co., 221 U. S. 168; 

Northern Securities Company vs. United States, 193 U. S. 

197; 

Dent vs. West Virginia, 129 U. S. 114; 

L. & N. Railway Company vs. Mottley, 219 U. S. 467-482; 

Knox vs. Lee, 12 Wall 457-551. 

Section V of the Food Control Law authorizes the President 
to prescribe regulations for the auditing of accounts to be kept 
by licensees, submission of reports by them and entry and 
inspection by the President's duly authorized agents of the place 
of business of the licensees. This clause does not contain any 
immunity clause. However, this would be implied, and in the 


22 


event, of criminal proceedings being instituted against any person 
for a wilful violation of this section, such person could claim the 
protection of that section of the Constitution against furnishing 
any evidence which might incriminate him. 

Interstate Commerce Commission vs. Brimson, 154 U. S. 

447-479; 

Counselman vs. Hitchcock, 142 U. S. 547. 

Upon the same line of reasoning, he could likewise claim the 
benefit of that part of Article V of the Constitution prohibiting 
unreasonable searches. The law does not authorize unreasonable 
searches and seizures. 

This law declares that all business subject thereto are affected 
with a public interest, Congress has wide latitude in determining 
what is a public use. Dillon on Municipal Corporations, 4th 
Edition, page 600, says, in reference to this power: 

“When legislation has declared the use or purpose, its 
judgment will be respected by the courts unless the use be 
palpably without reasonable foundation.” 

This law prescribes what regulations the President may pro¬ 
mulgate thereunder. It does not confer legislative power, but 
merely administrative powers. As was stated in the case of 
United States vs. Grimaud, 220 U. S. 506-518, that if the regu¬ 
lations are confined “within the field covered by the statute, 
they could adopt regulations of the nature they had thus been 
generally authorized to make in order to administer the law and 
carry the statute in effect.” 

That Congress may delegate to others powers which a legis¬ 
lature may rightfully exercise itself. See Wayman vs. Southard, 
10 Wheat. 42; Red C Oil Manufacturing Company vs. Board of 
Agriculture, 222 U. S. 380. 

Price Fixing; Power of Federal Government to Regulate Prices. 

-The Hood Administ ratio n is no price-fixing body except with 
regard to certain.commodities which are entirely dominated by 
existing abnormal conditions, as for example, wheat. The Food 
Administration has taken active steps to prevent profiteering 
and speculation by regulating the profits of the distributing 
trade to a normal pre-war basis. 

Section 5 of the Food Control Law provides that the President 
may determine what “is a just, reasonable, non-discriminatory, 
fair storage charge, commission, profit, or practice. ’ ’ Under Sec¬ 
tion 25, the President is authorized to fix the price of coal and 
coke. Section 14 provides that the President may fix a guar¬ 
anteed price for wheat. 

The general regulations governing all licensees prohibit the 

23 




sale or other handling of food commodities on any unjust, 
exorbitant, unreasonable, discriminatory, or unfair commission, 
profit, or storage charge. The special regulations applicable to 
particular businesses limit in many cases the maximum margins 
of profit which the licensee is entitled to charge, the variation in 
the prices depending upon the nature of the services rendered. 

Definite measures to limit retail prices have been announced by 
the Food Administration. It is, apparently, the intention of the 
Administration to carry this out through the medium of “fair 
price lists’’ which are to be published in every county, hamlet, 
town, and city in the country. The purpose of this is to protect 
the consumer from unreasonable price advances. In every com¬ 
munity the Food Administration proposes to establish price 
interpreting committees, composed of representatives of the 
wholesalers, retailers, and consumers. This interpreting board 
will interpret the fair retail prices on the basic commodities that 
comprise a large part of the people’s diet. The published lists 
which will appear in the local newspapers will give the range of 
maximum selling prices, showing a low price which should show 
charges that should rule in a “ cash and carry ’ ’ store and a high 
price representing the charge in “credit and delivery” stores. 
The Food Administration announces that consumers will be asked 
to report to their Food Administrator any retailer charging more 
than the announced prices. Investigation of these reports will 
give the Food Administration a basis upon which to work to 
separate the patriotic dealer from the profiteer. The Ad¬ 
ministration will exercise an indirect control over the retail stores 
by cutting off their supplies at the source, that is to say, instruct¬ 
ing wholesale dealers under a license to sever business relations 
with those firms which exact more than a reasonable charge. It 
is understood that retail price reporters are being appointed in 
almost every county in the United States. They are expected to 
keep a close check upon charges made at the stores and to report 
those stores which do not sell according to the published “fair 
price lists.” When an investigation shows that the dealer has 
charged excessive prices the administrator will grant him a 
hearing. If he is unable to show justification, he will be pun¬ 
ished. Those retailers who are required to secure a license, 
namely, those who are doing a business in excess of $100,000 per 
year, will have their licenses summarily revoked or suspended. 
In the case of those dealers who are not required to secure a 
license, the indirect control over these will be exercised as men¬ 
tioned above, namely: Their source of supply of food commod¬ 
ities will be cut off. The Government has also published in local 
papers from time to time prices which include not only retail 
range of prices, but also wholesale range of prices, These prices 

24 


are arrived at through interpreting boards as in the case above, 
upon which board there is a representative of the wholesale 
grocers. The prices quoted are fair, reasonable prices and a sale 
by a wholesaler at a price in excess of that quoted, without 
justification, would result in the suspension or revocation sum¬ 
marily of his license. The Food Administration usually in these 
“fair price lists” quotes maximum prices. It is, therefore, no 
violation to sell below these prices except where such prices are 
below cost for the purpose of increasing and promoting trade. 

That the State has the power to regulate prices as an incident 
to its sovereignty would not admit of serious doubt. See Cov¬ 
ington and L. Turnpike Road Co. vs. Sandford, 164 U. S. 578; 
Holting vs. Godard et ah, 183 U. S. 79; Ouachita Packet Co. vs. 
Aiken, 122 U. S. 444. 

Practically every State has a Public Utility Commission with 
power to regulate the prices of their services. It is not necessary 
under modern decisions of our courts that a concern be a monop¬ 
oly or have a secondary franchise as, for example, a common 
carrier, before it can be subject to regulation. The criterion, 
apparently, is whether the business is effected with a public 
interest. As was stated in the case of Munn vs. Illinois, 94 U. S. 
113: ‘ ‘ That when one devotes his business to a public use he has 
in effect granted to the public such an interest in its use that 
he must submit to be controlled by the public for the common 
good to the extent of the interest he has thus seated in the public 
in his private property. ’ ’ See also Louisville Railway Company 
vs. Finn, 235 U. S. 601; Budd vs. New York, 143 U. S. 515; 
Crass vs. Stoeser, 153 U. S. 391. 

The power of the Federal Government to legislate on such 
subjects must, of course, be derived from the Constitution. The 
power of Congress under the Commerce Clause to enact laws 
involving matters relating to commerce and of national concern 
is, of course, plenary. The case of Manufacturers Light & Heat 
Co. vs. Ott et al, 215 Fed. 940, refers to this power as including 
the power to control the price of commodities entering into com¬ 
merce among the States. 

The power of regulation of prices has been but partially exer¬ 
cised and has not been the subject of adjudication in this country. 
In Australia such a case arose which the court decided largely 
on American authorities. See Farey vs. Burvett, '21 Common¬ 
wealth Law Reports, 433. The constitution of Australia is sim¬ 
ilar to our own, the legislative powers of the Federal Government 
being expressly enumerated, all other reserved to the State. The 
War Precautions Act of Australia granted power to the Gover¬ 
nor-General ‘ ‘ to make such regulations as he thinks desirable for 
the more effectual prosecution of the war or the more effectual 


25 


defense of the commonwealth, prescribing the conditions of the 
disposal or use of any property, goods, articles, or things of any 
kind. ’ ’ The maximum price of bread was fixed by regulation of 
the Governor-General under the act above referred to. The 
validity of this regulation and the law under which it was made 
was questioned as being unconstitutional. It was contended that 
the war power extended only to legislation dealing directly with 
the prosecution of the war and not to such industrial legis¬ 
lation as in this case. The court held, two judges dissenting, that 
the legislative powers of the parliament, under the constitution, 
included the power during the present state of war to fix within 
limits of locality the highest price which, during the continuance 
of the war, may be charged for bread. The court said: “As I 
read the constitution the commonwealth, when charged with the 
duty of defending the commonwealth and states is armed * * * 
with a power which is commensurate with the peril it is designed 
to encounter, or as that peril may appear to the parliament itself; 
and if need be, it is a power to command, control, organize, and 
regulate, for the purpose of guarding against that peril, the 
whole resources of the continent, living and inert, and the activ¬ 
ities of every inhabitant of the territory. The problem of na¬ 
tional defense is not confined to operations on the battlefield or 
the deck of a man-of-war; its factors enter into every phase of 
life and embrace the co-operation of every individual with all 
that he possesses, his property, his energy, his life itself; and 
in this supreme crisis, we can no more sever the requirements 
and efforts of the civil population whose liberties and possessions 
are at stake, from the movements of our soldiers and sailors who 
are defending them than we can cut away the roots of a living 
tree and bid it still live and bear fruit deprived of the suste¬ 
nance it needs.” The power to pass such legislation, and the 
necessity or expediency of legislation on price regulation, was 
supported by the famous case of McCulloch vs. Maryland, 4 
Wheat (U. S.) 316, and the celebrated legal tender case (Juil- 
lard vs. Greeneman, 110 U. S. 421). 

The right to contract is subrogated to the police power of the 
United States. The various branches of the Government are, of 
course, as much subject to the Constitution during the war as 
they were before, but on account of the exigencies of war, certain 
rights of the individual must be subordinated to the safety of the 
State. As was stated by Isaacs, J., in the case of Farey vs. Bur- 
vett, supra: ‘ ‘ The Constitution, as I view, is not so impotent a 
document as to fail at the very moment when the whole existence 
of the Nation it is designed to serve is imperiled.” 


26 


CHAPTER IV 


GENERAL LICENSE REGULATIONS 

The following general license regulations govern all licensees 
for the importation, manufacture, storage and distribution of 
food commodities and feeds (except salt water fishermen). 

The licensee is also required to observe special regulations 
applying to his particular business, which are contained in this 
book. The general regulations govern all licensees except in so 
far as such rules may be modified as to particular licensees by 
special rules and regulations. The general rules are not to be 
construed in any way as modifying or affecting the operation 
of the special rules, and whenever any special rule is incon¬ 
sistent with a general rule the special rule shall prevail. 

Both the general and special rules and regulations were prom¬ 
ulgated by the President under the Food Control Law. Every 
person directly or indirectly affected by these rules and regula¬ 
tions and by the statute referred to, should carefully read and 
study this statute, which is the basis of all rules and regulations 
and a clear understanding of which will aid materially in the 
interpretation of such rules and regulations. 

Purposes. —The regulations were promulgated to accomplish 
three principal objects, viz.: 

1. To limit the prices charged by every licensee to a 
reasonable amount over expenses and forbid the acquisition 
of speculative profits from a rising market; 

2. To keep all food commodities moving in as direct a 
line and with as little delay as practicable to the consumer; 

3. To limit as far as practicable contracts for future de¬ 
livery and dealings in future contracts. 

It is believed that if every licensee will make those purposes 
the cardinal principles of his business and obey the law and the 
regulations, he will have conducted his business in such a way 
that he will be free from interference by the government. 

The Food Control Law gives the President broad powers to 
deal with individual cases as, for example, to determine in each 
case whether a particular practice, commission, profit or storage 
charge is unreasonable, unjust, discriminatory or unfair. See 
section 5, Food Control Law. 


27 



GENERAL REGULATIONS 


Note. —The numbers used are the numbers of the Government rules as 
published and in effect on May 3, 1918. Attention is called to the fact that 
General Rules 9, 13, 14, 15, 16, 23, 24, 25, 26 and 27, heretofore appearing 
in the government publications of the general rules, are deleted from the 
general rules and are contained, where applicable, in the special rules apply¬ 
ing to particular business. 

The following general rules correspond to General Rules, Series B, 
which became effective, unless otherwise noted, on November 1, 1917. 

Rule 1. Reports to be furnished.^— It shall be the duty of 
each licensee to give to such representative as may be designated 
by the United States Food Administrator, whenever the said 
representative shall so require, any information concerning the 
conditions and management of the business of the licensee. Re¬ 
ports, when requested by said representative, shall be made on 
such blanks, to be furnished by the United States Food Admin¬ 
istration, as the United States Food Administrator may desig¬ 
nate, giving complete information regarding transactions in any 
commodities imported, manufactured, refined, packed, purchased, 
contracted for, received, sold, stored, shipped or otherwise han¬ 
dled, distributed or dealt with by the licensee, or on hand, in 
the possession or under the control of the licensee, and any other 
information concerning the business of the licensee that such 
representative may require from time to time. Whenever the 
said representative shall require it, the licensee shall furnish 
such information in writing under oath. 

Note. —Discontinuance of Certain Monthly Reports after May.—On June 
15th the Food Administration announced that after the month of May, 1918, 
all licensees reporting as: 

(1) WHOLESALE AND RETAIL DEALERS, JOBBERS AND 
SHIPPERS OF HOTELS AND INSTITUTIONS (Form C; printer’s 
Form 0117) 

(2) BROKERS OR DEALERS HANDLING NON-PERISHABLE 
FOODS ON BROKERAGE OR COMMISSION, OR AS TRUSTEES 
(Form D; printer’s Forms 0118 or 0284) 

(3) COMMISSION MERCHANTS, BROKERS, AUCTIONEERS, 
AND ALL DEALERS IN PERISHABLE PRODUCTS (Form C 5, 6 
for owned goods, and D 5, 6 for commission goods; printer’s Forms 
0129 and 0128, respectively) 

will not be required to file such monthly reports. However, if they are 
reporting on any of the forms named above, blanks for the regular May 
report have been forwarded to them. If they have not already returned 
this May report, they MUST do so, but THEREAFTER, until further 
notice, they will not be called upon for these monthly reports. 

This refers ONLY to the blanks named above. 

The policy of the Administration with respect to such reports is appar¬ 
ently that they intend to call for reports from time to time without notice 
instead of requiring reports every month. It is therefore important that 

2S 


books should be kept by the licensee necessary to enable him to report when 
so called upon. The Administration announces that licensees will be visited 
from time to time by inspectors who will present proper credentials. 

See Section V of the Food Control Law. 

Rule 2. Property and records to be open to inspection.— 
The authorized representative of the United States Food Ad¬ 
ministrator shall be at full liberty, during ordinary business 
hours, to inspect any and all property stored or held in posses¬ 
sion or under the control of the licensee, and all records of the 
licensee. All necessary facilities for such inspection shall be 
extended to the said representative by the licensee, its agents 
and servants. 

Rule 3. Must keep records. —The licensee shall keep such 
records of his business as shall make practicable the verification 
of all reports rendered to the United States Food Administra¬ 
tion. 

Note. —Records of “drop shipments” are to be included in the records 
of the wholesaler as well as of the manufacturer or retailer. 

Rule 4. Information furnished not to be divulged. —No 
agent or employee of the United States Food Administration 
shall divulge or make known in any manner, while he is such 
agent or employee or thereafter, except to such other agents or 
employees of the United States Food Administration as may be 
required to have such knowledge in the regular course of their 
official duties, or except in so far as he may be directed by the 
United States Food Administrator or by a court of competent 
jurisdiction, any facts or information regarding the business of 
the licensee which may come to his knowledge through any ex¬ 
amination or inspection of the business or accounts of the licensee 
or through any reports made by the licensee to the United 
States Food Administration. 

Rule 5. Unreasonable profits prohibited. —The licensee 
shall not import, manufacture, store, distribute, sell, or other¬ 
wise handle any food commodities on an unjust, exorbitant, un¬ 
reasonable, discriminatory, or unfair commission, profit, or stor¬ 
age charge. 

Notes. —Special profit regulations .—In addition to this general rule re¬ 
quiring that profits should be reasonable, the licensee in most lines of busi¬ 
ness will find special rules dealing more explicitly with the profits permitted 
in his business. 

Licensee performing two functions .—In cases where a licensee, in addition 
to his principal business, performs another function customarily performed 
by a different type of licensee, as where a manufacturer distributes through 
a jobbing department directly to the retail trade, he will be permitted to 
make a reasonable charge for each service, provided— 

(a) That he keeps such separate accounts of his operations as to enable 

29 




him to make the reports required of persons licensed to perform that func¬ 
tion, and to enable such reports to be verified; and 

(&) Conforms to the regulations of the Food Administration in respect 
to the supplementary function which he performs. 

In many cases, however, the licensee’s service and his expense of opera¬ 
tion will not be as great as that of persons engaged exclusively in a similar 
business, and in such case he will not be allowed to charge as great a mar¬ 
gin as is permitted to such other licensee. 

Cold-storage warehouse charges .—This rule prohibits cold-storage ware¬ 
house licensees from making unreasonable or discriminatory charges in han¬ 


dling or storing food commodities. 

The United States Food Administration recognizes the principle that up 
to a certain point it ordinarily costs less per unit to handle large quantities 
than to handle small quantities, and large lots than small lots, of a partic¬ 
ular commodity, and has no objection to licensees charging a lesser rate per 
unit for large quantities or lots than for small quantities or lots if the dif¬ 
ferentiation in rates is based on variation of cost in handling the particular 
commodity. 

Hereafter, the above-mentioned principle must be applied by cold-storage 
warehousemen in arranging any variations in rates or discounts for quantity 
contained in schedules of rates or amendments thereto that are filed. 

With respect to rate schedules now on file in which lower rates for large 
lots or discounts for quantity are stated, no objection has been or will be 
made to differentiations in rates unless they are obviously merely arbitrary 
or discriminatory or in effect constitute a preference to one or a few pat¬ 
rons, or unless upon investigation they are found to be without reasonable 
justification. 

All rates must of course be contained in the schedule required to be filed 
with the United States Food Administration and must be clear, explicit, 
well defined, and intelligible. Every patron is entitled to know his exact 
classification and the specific rate he is to be charged. 

The test .—The test is, are the commodities being sold at not more than a 
reasonable advance over the actual purchase price and is the price non-dis- 
criminatory? 


Rule 6. Resales within same trade prohibited, when.— 
The licensee, in selling food commodities, shall keep such com¬ 
modities moving to the consumer in as direct a line as practicable 
and without unreasonable delay. Resales within the same trade 
without reasonable justification, especially if tending to result 
in a higher market price to the retailer or consumer, will be 
dealt with as an unfair practice. 


Note. —Special resale regulations .—See pamphlets containing special reg¬ 
ulations for application of this rule to particular businesses and commodi¬ 
ties. 

Dealers in nonperishable commodities will find a full statement explaining 
what resales are reasonable in their business in the special license regula¬ 
tions applying to them under Rule A-6. 

Resales in poultry, eggs, butter, cheese, coffee, and rice are dealt with by 
special regulation under the rules applying to dealers in those commodities. 

In eases of resale, any broker concerned shares the same responsibility as 
the buyer and seller. 

Resales that may be permitted should be made subject to such measure of 
control as the Federal Food Administrator in the particular State deems it 
necessary to exercise. In some States, for example, the Administrator has 


30 



required the parties to a proposed resale to file with him affidavits or other 
evidence sufficient to establish the fact that the particular lot of goods being 
resold bears but one wholesale profit between the manufacturer and the 
retailer. A similar principle applies to resales between retailers. 

In general, the Pood Administration will not ordinarily make objection 
in a case where the one permissible wholesale profit on a particular lot of 
goods is divided and shared by two or more wholesalers. The fact that the 
wholesaler who desires to purchase a certain lot of goods from another 
wholesaler might, or would be required to pay a higher price if he purchased 
other similar goods direct from the manufacturer, or other original source, 
has no bearing whatever upon the legality of a resale under this general 
rule. 

The obvious reason is that this rule and the special reasonable profit rules 
have to do with the 11 particular goods sold. ” It is clear that the particular 
lot of goods whose resale is proposed will go through to the retailer at a 
lower price if the wholesaler who now owns them sells them direct to the 
retailer instead of another wholesaler who would add a second wholesale 
profit on the same lot of goods. There are perhaps wholesalers who, because 
of their limited business or for other reasons, cannot buy from manufac¬ 
turers or other original sources in carload quantities. 

There may be cases, therefore, in which such a wholesaler could sell a 
particular lot of goods to a retailer at a lower price if he could benefit by 
the carload rate from the manufacturer or some large wholesaler at a point 
near him. In such instances there may be reasonable justification for a 
resale within the same trade, but no general exception of this sort has 
been made. 

Rule 7. Speculation prohibited. —No broker or other licensee 
shall buy or sell any food commodity for his own account unless 
he is also regularly engaged in, and holds himself out to the 
trade as conducting the business of distributing such commodity 
otherwise than on a commission or brokerage basis, or unless he 
uses such commodities in manufacturing; provided that this 
rule shall not apply to sales on an exchange, board of trade, or 
similar institution. 

Rule 8. Sales to speculators forbidden. —No licensee shall 
knowingly sell any food commodity to a broker or other licensee 
who is not buying for personal consumption or engaged in using 
such commodity in manufacturing, or who is not regularly en¬ 
gaged in, and holding himself out to the trade as conducting the 
business of distributing such commodity otherwise than on a 
commission or brokerage basis; provided that this rule shall not 
apply to sales on an exchange, board of trade, or similar insti¬ 
tution. 

Note. —The regulation of exchange transactions is not a function of 
license regulations, and under section 13 of the Food Control Act will be 
handled by special regulation from time to time. 

There is no general rule 9 in the present series. See special rules apply¬ 
ing to your business. 

Rule 10. Unfair practices forbidden. —The licensee shall 
not buy, contract for, sell, store or otherwise handle or deal in 


31 


any food commodities for the purpose of unreasonably increas¬ 
ing the price or restricting the supply of such commodities, or 
of monopolizing, or attempting to monopolize, either locally or 
generally, any of such commodities. 

Rule 11. Must not commit waste. —The licensee shall not 
knowingly commit waste, or willfully permit preventable deter¬ 
ioration in connection with the production, importation, manu¬ 
facture, storage, distribution, or sale of any food commodities. 

Note. —Disputes between shippers of food stuffs .—The Food Administra¬ 
tion is interested in food stuffs which are held up in ears owing to disputes 
between the consignor and the consignee with the view of preventing waste. 

When a commodity is deteriorating, something should be done to release 
the car and avoid waste of food. When the goods are not what were ordered, 
the consignee, of course, is not required to accept them, but in such case 
their prompt marketing should be arranged for by the consignor. In cases 
where the consignor has complied with his contract, it is, of course, the duty 
of the consignee to accept and market the goods. When full and complete 
performance of all the terms and conditions in the contracts of sale has 
not taken place, either because of one party or the other, and the failure of 
such is capable of adjustment, it would be, in such case, the duty of the 
consignee to accept and market, and the consignor’s duty would be to adjust. 

In such cases the Food Administration has announced that it stands ready 
to provide arbitration. In cases where food is not involved and the ques¬ 
tion is simply a matter of law, the Administration does not act, but leaves 
the parties to their legal rights. 

Rule 12. Must report change of address. —The licensee 
shall report within 10 days, in writing, to the United States 
Food Administration any change of address, or any change in 
the management or control of the person, firm, corporation or 
association licensed, or any change in the character of the busi¬ 
ness. 

Note. —There are no general rules 13, 14, 15 or 16 in this series. See 
special rules applying to your business. 

Rule 17. Must not deal with persons violating food con¬ 
trol act. —The licensee shall not, except with the written con¬ 
sent of the United States Food Administrator, knowingly sell 
any food commodities to or buy any food commodities from any 
person who shall, after this regulation goes into effect, violate 
the provisions of sections 4, 6, 8 or 9 of the act of Congress 
approved August 10, 1917, by making an unreasonable rate or 
charge therefor or otherwise selling, holding, or dealing wrong¬ 
fully in or with such commodity. 

Note. —This rule became effective November 1, 1917, and was amended 
to its present form January 28, 1918. 

Rule 18. Secret rebates prohibited. —No licensee shall make 
any allowance or payment to the agent or employee of any ex¬ 
change, association, or other person from whom he buys, or to 


32 


whom he sells, or for whom he handles commodities on commis¬ 
sion without the permission of the principal of such agent. If 
such permission is not in writing, immediate written notice shall 
be sent to the principal by the licensee on the account sales or 
otherwise, giving the amount of the payment and the name of 
the agent, exchange, or association to whom paid. 

Notes. —This rule became effective November 1, 1917, and was amended 
to its present form April 4, 1918. 

If general written permission is given by the principal for his agent to 
receive commissions from a particular broker or other person, written per¬ 
mission or notice is not required in case of each individual commission. 

Payments or allowances to an agent of the shipper by a licensee for any 
services whatever which the agent renders to the licensee are not permissible 
without the permission of the shipper. 

The fact that a broker makes no charge to the owner for forwarding to 
another locality goods that he can not sell in his own field does not obviate 
the necessity of obtaining the permission of the owner to the receipt by the 
broker of an allowance or payment from the new consignee. 

Permission of Shippers to Agents of Shippers* Association. 

In connection with that part of the preceding rule which provides that 
permission must be secured of the principal of such agent; a licensee who 
is an agent of the Shipper’s Association may pay the association or exchange 
a percentage of gross sales by the following method rather than obtaining 
separate permission from each individual member of the association to pay 
such percentage. Shippers who are members of the association, it is sug¬ 
gested, sign the following form, with the blanks filled: 

“To any agent of the. 

I, the undersigned shipper of produce, hereby grant permission to 

you to pay to said.. • • 

.per cent of the amount of the gross sales on every consign¬ 
ment made by me to you. This permission shall be effective from the 
date hereof, until revoked in writing by me. 

(Signed) . 

Date. 

Address . ’ ’ 

Such permission may be signed separately by shippers or one paper may 
be signed by all. 

Form of Statement on Account Sales. 

Under General Eule 18 it is provided that where a payment is made to the 
agent of the person with whom the licensee deals and where the permission of 
the principal of such agent for such payment is not in writing, ‘ ‘ immediate 
written notice shall be sent to the principal by the licensee, on the account 
sales or otherwise, giving the amount of the payment,’’ etc. A written 
statement of the amount of the gross sales and the percentage of the gross 
sales paid to such agent will be considered an adequate statement of the 
amount paid. A statement by the commission merchant on the account of 
sales sent to the principal in the following form will be sufficient: 


“ The commission noted hereon includes. % col¬ 
lected for and paid to.. shipper’s 

agent. ’ ’ 


33 










Rule 19. Market quotations must not be misleading. —The 
licensee shall not issue, or make public, market quotations or 
make any statements to any person regarding the price at which 
food commodities are being sold, which quotations or statements 
can not be verified either from his own records or from the 
records of other licensees, and shall not make any other mis¬ 
leading statements which tend to enhance the price of any food 
commodities. 

Notes. —This rule does not make the licensee responsible for distributing 
market reports published by reputable and established market news agencies 
bearing the name of the publishers. 

It is not necessary to inform a shipper that a quotation is subject to a 
charge for brokerage if it is the general understanding of the trade that 
such a quotation is subject to such a charge. 

Where Broker Guarantees Selling Price. 

Where a commission merchant receives a consignment of poultry or 
eggs and guarantees to the consignor a definite selling price, he must show 
on the account sales the actual price at which the goods were sold, together 
with services actually performed and expenses actually incurred, and as a 
separate item, must show any sum paid to the consignor by reason of the 
commission merchant’s contract of guaranty. The failure to do this will 
not only be a violation of this rule by reason of a misstatement of the price 
at which the commodities are being sold, but would also be a violation of 
special rule 2 governing commission merchants. 

Rule 20. Definitions of terms in rules and regulations. 
—The words used in these rules and regulations shall be con¬ 
strued to import the plural or the singular, as the case demands. 
The word “person,” wherever used in these rules and regula¬ 
tions, shall include individuals, partnerships, associations and 
corporations. The words “food commodities,” wherever used 
in general or special rules and regulations, unless otherwise 
specified, shall include all commodities specified by the President 
in any license proclamation already issued or which may here¬ 
after be issued by him under the authority of section 5 of the 
act of Congress approved August 10, 1917, known as the Food 
Control Act. 

Dealings on an exchange, board of trade, or similar institu¬ 
tion shall include only such dealings as are made by public 
trading on the floor of the exchange under the supervision of 
the exchange, board of trade, or similar institution, in such ring, 
pit, or other similar place as may be especially reserved by the 
exchange, board of trade, or similar institution for public trad¬ 
ing. 

Rule 21. Special rules prevail over general rules, when. 
—Nothing contained in these general rules and regulations shall 
be construed as restricting, modifying, or affecting in any man¬ 
ner the operation of any special rules and regulations which 


34 


have already been promulgated or which may hereafter be prom¬ 
ulgated, and whenever any special rule is inconsistent with a 
general rule, the special rule shall prevail. 

Rule 22. License number must be placed on certain doc¬ 
uments. —The licensee shall place on every contract, order, ac¬ 
ceptance of order, invoice, price list, and quotation issued or 
signed by him relating to food commodities the words “United 
States Pood Administration License Number,” followed by the 
number of his license. No licensee shall knowingly buy any 
food commodities from or sell any such commodities to, or han¬ 
dle any such commodities for, any person required to have a 
license who has not secured such license and complied with the 
provisions of this rule. 

Notes. —This rule applies to retailers as well a® to all other licensees. 

Where a business has a main office and several branches, the contracts, 
invoices, etc., issued or signed by the branches, as well as by the main 
office, should bear the license number of the licensee. 

Abbreviations of “United States Food Administration License Number” 
are not permitted. 

Ordinary sales ticket, duplicate of which is sent to the buyer C. 0. D., 
should be stamped with the licensee’s license number. 

Orders taken by salesmen should be stamped with the licensee’s number. 

Delivery slips sent to customers with their daily orders should bear the 
Food Administration license number of the licensee. 

A licensee who inserts an advertisement in a paper, which paper contains 
quotations, is not required to include his license number in such advertise¬ 
ment. However, if he inserts an advertisement, which advertisement con¬ 
tains a price list of quotations by the licensee, then the advertisement should 
include his license number. 

This rule does not require a licensee to include his license number in quo¬ 
tations, etc., by wire. The license number, however, should be placed on the 
confirmation of any such telegram that is mailed or otherwise delivered to 
the addressee. 

A produce association or reputable market news agency issues a market 
report; a licensee takes a certain number of copies, prints his name on them, 
and sends them out to shippers. The license number of the commission mer¬ 
chant need not appear on the market report so sent out by him. 

The licensee’s license number should appear on purchase slips that are 
given to customers over the counter. 

A licensee may accept the statement of a reputable person that he has 
applied for a license. However, it is unlawful for a licensee knowingly to 
deal with a person who is required to have a license who has not procured 
a license. 

If two or more licensees sign a contract, order, etc., the license numbers 
of all those so signing the contract should appear on it. 

Under this rule it is necessary for elevator companies to stamp license 
numbers on country storage tickets and on warehouse receipts. 

A catalogue quoting prices should contain the license number. 

The license number must be placed upon the face of a sales slip and not 
upon the reverse side. 

Neither bills of lading, checks, promissory notes, nor drafts need contain 
the license number. But see special rule 2 governing dealers in cotton seed 
on page 99. 


33 


Price tags or window posters or labels need not bear the license number. 

When a broker enters into a contract, or issues an order, acceptance of 
order, invoice, price list or quotation, expressly in the name of his principal, 
the license number of the broker need not be placed upon the instrument. 
Where, on the other hand, a broker contracts in his own name or issues or 
signs in his own name any of the above-mentioned instruments, the license 
number of the broker must be placed thereon. The license number of the 
principal must in all cases appear upon the instrument. The license num¬ 
bers of both the buyer and seller should be placed upon every contract. In 
such a case, where the broker is not actually a party to the contract, his 
license number need not be placed upon the contract or upon any of the 
herein above-mentioned instruments. 

The license number of a hotel or restaurant holding a baking license 
should appear on its menus. 

Illustrative case .—John Jones, who operates a general merchandise store 
in a country town and buys eggs from the farmers, and who never heard of 
the Federal Food Administration Rules and Regulations, and, therefore, has 
no license under the Food Regulations, engages Oliver Smith, a broker, to 
sell a certain lot of eggs. Oliver Smith offers the lot of eggs to Chester 
Shaw, another broker, who negotiates a sale to the X Y Company, a jobber. 

What are the requirements under General Rule 22, supra, and what other 
complications are there in this case? 

Answer .—Under Rule 22, supra, Chester Shaw is required to place the 
license number of Oliver Smith, as well as his own license number, on the 
sales memorandum, and any other papers designated in the rule that are 
issued by him, and that Telate to the transaction, but is not obligated to 
place thereon the license number of John Jones. 

Under the rule that the license number of the principal must in all cases 
appear upon the instrument, Chester Shaw may regard Oliver Smith as his 
principal. John Jones, in the case above mentioned, is required to have a 
license under the Rules and Regulations regardless of the amount of his 
annual business, inasmuch as he is in such case the operator of an egg 
packing plant, and not a retailer, and liable for a license regardless of the 
amount of his annual business. See page —. Would the parties dealing 
with John Jones be liable for a violation of this rule and the Food Control 
Law? The regulations provide that a licensee shall not, knowingly, handle 
any food commodities for any person, etc. If he did not know that the 
party with whom he was dealing was required to have a license, he would 
not be liable. However, the facts in this particular case are so plain that 
it is believed any person would have knowledge of such facts as to have put 
him on inquiry, at least. 

Where there is any doubt in the mind of the person with whom the licensee 
is dealing as to the requirements for a license, it is suggested that a state¬ 
ment in writing be secured from the party with whom he is dealing, showing 
in what capacity he deals j if he is not the original dealer, what price he 
paid for the goods, whether he is required to secure a license, and that the 
transaction does not in any way involve the violation of any of the rules 
and regulations of the Food Administration or the law under which they 
were promulgated. See also Rule 17, supra. As to the transactions gov¬ 
erning the brokers in this case, see Special Rules governing brokers. For 
the price which the parties are entitled to charge for fresh eggs see Spe¬ 
cial Regulations governing Fresh Eggs. ’ F 

Rule 23 Amended, Effective September 1, 1918, as Follows: 

Bule 23. Combination sales prohibited. —No licensee shall 
make or offer to make any combination sales of any food com- 

36 


modity, excepting that a retailer may sell wheat flour in com¬ 
bination with one or more wheat flour substitutes as' prescribed 
by the Wheat Conservation Rules: Provided, That in making 
any such combination sales the licensee shall name and charge 
a price for each of the articles so sold, which shall not represent 
more than a normal prewar margin over cost of any one of such 
articles. 

A Combination sale is (1) any sale or delivery of two or more 
commodities, or of two or more kinds or sizes of the same com¬ 
modity, at a price effective only if they are bought at the same 
time; or (2) any sale or delivery of a commodity upon condition 
that the purchaser shall buy some other commodity, or some 
other kind or size of the same commodity. 

Note. —This rule became effective January 28, 1918, and was amended 
to its present form May 8, 1918. 

Under the foregoing rule a licensee must not give a buyer any food com¬ 
modity in connection with the purchase of any other commodity. For in¬ 
stance, a licensee cannot give to a purchaser of rice a quantity of sugar. 
The purported gift of sugar would be considered a sale of the sugar, and 
the transaction, therefore, would be violative of the rule. 


37 


CHAPTER V 


SPECIAL RULES AND REGULATIONS 

The Special Rules and Regulations promulgated under the 
Food Control Law apply to particular businesses. The General 
Rules and Regulations apply to all commodities, and should be 
read in connection with the Special Rules. However, whenever 
any special rule as to a particular commodity is inconsistent 
with the general rule, the special rule shall always prevail. It 
is important, therefore, that the licensee first look to the special 
rule applying to his particular business, then to the general 
rule. He should, of course, carefully study the Food Control 
Law, which is the basis of these rules and regulations, and under 
which they wele promulgated. 

Sugar Rules. 

The President has approved the formation of a Sugar Equal¬ 
ization Board by the Food Administration. The chairman of 
this board will be Mr. Herbert Hoover, Foofl Administrator, 
and its officers will be in Washington, D. C. The purposes of 
the board are to equalize the cost of various sugars and secure 
the better distribution^ Arrangements will be made for joint 
dealings with the allies in foreign sugars, and the adjustments 
of differentials in overseas freight rates. This board will be 
incorporated with a capital of $5,000,000, which will be supplied 
by the President from his special fund. The whole stock will 
be held by the President for the United States Government. 

Rationing op manufacturers and others using sugar.— 
Special rules have been issued by the Food Administration ap¬ 
plying to all manufacturers and refiners of sugar and to whole¬ 
salers, jobbers, importers, retailers, and brokers of sugar. All 
manufacturers using sugar, except to make essential food prod¬ 
ucts, are put on a ration basis. Those classes of business which 
are regarded as essential may obtain 100 per cent of their nor¬ 
mal requirements of sugar. Other businesses are limited to from 
50 to 75 per cent of their normal requirements depending upon 
the nature of the particular business. 

A plan of distribution was inagurated by the Food Adminis¬ 
tration effective May the 15th. This plan has been modified, 

38 


effective. July the 1st, 1918. Under the present plan, all pur¬ 
chases of sugars made by manufacturers, wholesalers, retailers, 
jobbers, bakers, eating houses, etc., can only be made by certi¬ 
ficates. These certificates are obtainable upon application to the 
LocaTbr State Food Administrator and are to be surrendered 
by the purchaser whenever any purchase of sugar is made. 
Manufacturing concerns must obtain certificates from the State 
where the plant is located. Where there are several plants 
owned by one concern in different States, separate applications 
should be made in each district where a plant is located. The 
various classes of businesses affected by these rules and regula¬ 
tions are required to file a statement with the local Food Admin¬ 
istrator showing the quantity of sugar used in their business 
during a certain period and upon which their allowance for 
sugar is based. 

Application of sugar rules. —The sugar rules, infra, apply 
to all kinds of raw, refined, and semi-refined beet and cane 
sugars, including granulated, powdered, lump, confectioners \ 
soft brown, clarified, open kettle, etc. They do not apply, how¬ 
ever, to maple sugar and corn or grape sugar. The countries 
of Hawaii, Porto Rico, and Alaska are exempted from the reg¬ 
ulations pertaining to sugar ration. 

Assignment or transfer of business. —If there is an assign¬ 
ment or a sale of a business affected by these rules and regula¬ 
tions, the assignee or transferee should, of course, be entitled to 
obtain sugar on the same basis and under the same circumstances 
as had been allotted his transferror under these rules and reg¬ 
ulations. 

Records. —It is important that all persons affected by these 
rules and regulations keep a proper and accurate record of the 
amount of sugar consumed by them and such other records as 
will enable them to make proper returns and reports. The fail¬ 
ure to be in a position to make such reports would result in such 
persons being unable to secure an allowance of sugar. 

Increased capacity. —In the case of those concerns whose 
capacity has been increased, they should be entitled to a proper 
allowance on filing a new capacity statement. An increase in 
the distributing capacity would not, it is believed, warrant an 
increase in allotment of sugar as in the case of a substantial 
increase in manufacturing capacity. 

Chain stores. —Chain stores should procure certificates from 
the State Food Administrator for the State in which the stores 
are located. No responsibility, of course, is assumed by the 
Food Administration as to the performance of a contract for 
the sale of sugar by the seller. The certificate issued by the 
Food Administration is nothing more than a permission to pur- 


39 


chase. The Food Administrator can, of course, modify or change 
a certificate at any time he desires to do so. 

In the case of those concerns doing both a wholesale and a 
retail business, their different businesses should be segregated 
and certificate obtained for the retail business and one for their 
wholesale. Retailers selling in a wholesale way must obtain 
statements as though they were wholesalers to the extent of such 
particular sales. Those products which are rationed at the 
source, such as com syrup, would not require for their purchase 
a certificate inasmuch as they are rationed at the source. 

Classification of trades. —All trades affected by these rules 
and regulations are divided up into the following classes: 

Class A includes the following businesses and commodities: 

! Candies, cereals, chewing gum, cocoa and chocolate, condiments, 
confections, flavoring extracts, invert sugar, soda water, soft 
drinks, sweet pickles, tobacco, honey, wines, dental preparations, 
dessert powder, malted milk, molasses, and syrups and certain 
other products. 

Manufacturers of aforesaid articles are now entitled to 50% 
l of their normal requirements of sugar. 

Soda fountains, regardless of what they use sugar for in dis¬ 
pensing fountain, must not receive over 50% of their normal 
requirements of sugar. 

Class B includes sugar in canning and preserving vegetables 
and fruits (except by soda fountains, etc., which are limited to 
a 50% use of sugar for all purposes), catsup, chili sauce, drugs, 
explosives, glycerine, bee culture, meats and milk. Users of 
sugar in these products are entitled to their requirements of 
sugar. Included in the above class would be meat packers and 
manufacturers of ant poison and other insecticides. (Ice cream 
manufacturers are allowed 75% of normal requirements.) 

Manufacture of water ices and sherbets are prohibited. (100% 
sugar means the amount of sugar required for that particular 
business.) In the case where fruits are preserved for soda foun¬ 
tain use, such preserved fruits would come under Class A instead 
of Class B. Therefore, they would be entitled to only 50% of 
their normal requirements. 

Class C includes all public eating places, as hotels, restaurants, 
boarding houses, public and other refreshment houses, dining 
cars, boats, clubs, buffets, caterers, institutions (city, county, 
state, or federal), hospitals, private canteens, internment camps, 
and other similar eating places regularly serving twenty-five per¬ 
sons or more. The basis of the allotment of this class is three 
pounds of sugar for every ninety meals served during the months 
of July, August and September of last year. A statement of 
their requirements must be filed on or before July 15th. Fail- 


40 


ure to file then, would probably result in no allotment being 
made. 

Class I) includes manufacturers of all bakery products, includ¬ 
ing bread, rolls, sweet yeast dough goods, crackers, biscuits, 
cookies, ice cream cones, cakes, pies, friend cakes, pastry, quick 
breads, Boston brown bread, batter cakes, waffles, etc. 

The above manufacturers will be allowed 70% of normal re¬ 
quirements. 

Class E covers retailers and others selling sugar for direct 
consumption. The householder is under this class, honor bound 
to ration his family to two pounds per month per person. The 
retailer is restricted in his sales to this quantity. The sales to 
customers at any one time should not exceed two pounds in the 
ease of those residing in the city; in rural districts, not to exceed 
five pounds at any one time. In the case of sales by the retailer 
(except to householders) they must be made only upon surren¬ 
der of authorized certificates issued to the buyer by the admin¬ 
istrator, as provided by the rules and regulations. 

The certificates which a retail grocer obtains from the Food 
Administrator from his sales will be by him delivered to his 
wholesaler, who in turn will deliver to the refiner. The refiner 
will deliver the certificates to the State Food Administrator issu¬ 
ing them. It is discretionary with the State Administrator 
whether he requires the customer to sign a statement before he 
will permit him to buy sugar at retail. 

Home canners are permitted, under the present rules, to ob¬ 
tain twenty-five pounds of sugar for canning. 

The following are the special license regulations governing 
manufacturers and refiners of sugar. The special license reg¬ 
ulations governing wholesalers, jobbers, importers, retailers of 
sugar and brokers of sugar are to be found in the ‘ ‘ Special Reg¬ 
ulations Governing Wholesalers, Jobbers, Importers, Retailers, 
and Brokers of Licensed Non-perishable Food Commodities, 
infra. 

Special License Regulations Governing Manufacturers and Refiners of 
Sugar. 

Note. —The following special regulations contain all regulations issued 
up to June the 1st, 1918, applying to njanufacturers of cane and beet sugar 
and, also, amendments and additions effective July the 1st, 1918. Such 
licenses are, also, subject to the general license regulations. 

A. Special Regulations Applying to All Manufacturers and Refiners 
of Cane Sugar and Beet Sugar. 

Rule 1. Minimum weight of carload shipments. —All car¬ 
load shipmens of sugar shall be made in car lots of not less than 
60,000 pounds each, unless a different minimum is authorized by 


41 



special written permission of the United States Food Adminis¬ 
trator ; Provided, however, That cars of lower carrying capacity 
than 60,000 pounds may he used without such permission if 
loaded to their maximum capacity. 

Rule 2. Manufacturer not to sell more than 10 days 
ahead.— The manufacturer or refiner shall not make any con¬ 
tracts for the sale of sugar except such as require shipment 
within 10 days, excepting contracts with the Federal, State, 
county, or municipal governments, or for export. He shall not 
make any contract except with such governments or for export 
which he has not reasonable cause to believe that he can fill 
within 10 days. 

Rule 3. Prices shall conform to price list furnished.— 
The manufacturer shall furnish to the United States Food 
Administrator, Washington, D. C., and deliver to the trade a 
price list showing his selling price and all selling terms and 
differentials in force. After such price list or any subsequent 
price list is issued the manufacturer shall make no sales of sugar 
except at the price, differentials, and terms shown in the price 
list then in force, until he has mailed to the United States Food 
Administrator a new price list showing any change made in said 
price, differentials, or terms, and has received the written ap¬ 
proval of the United States Food Administrator to any change 
in differentials and to any addition to the list of new types of 
sugar or styles of packages. 

Provided, That every price list and contract to sell sugar shall 
include a stipulation that in case a change in the United States 
Food Administration regulations authorizes a higher price than 
that named in the contract or price list before the arrival of the 
sugar at destination, the refiner shall have the right to raise his 
price to such higher price, and that in case such change re¬ 
quires sales at a lower price than that named in the price list 
or contract before the arrival of the sugar at destination, the 
refiner shall be required to reduce his price to such lower price. 

Note. —The issuance of price lists by manufacturers of beet sugar will 
not be necessary until August 1, 1918, and after that date it will be dis¬ 
pensed with in cases in which the manufacturer shall have entered into a 
proposed voluntary agreement with the United States Food Administrator 
prescribing other methods of supplying such information. 

Rule 4. Maximum brokerage fixed.— The manufacturer 
shall not pay any broker commissions in excess of one-fourth 
of 1 per cent on the value of raw sugar bought, or in the case of 
refined or semi-refined sugar sold in excess of 5 cents per hundred 
pounds, excepting, however, that a higher commission may be 
paid for any special service if first approved by the United States 
Food Administrator. 


42 



Rule 5. Double brokerage prohibited. —The manufacturer 
shall not allow or pay to any person any brokerage or commission 
on sugar or its by-products on which he knows a commission or 
brokerage to have already been paid. 

Rule 6. Equitable distibution prescribed.— The manufac¬ 
turer shall distribute sugar equitably among his customers so 
that no one of such customers receives more than his fair share 
of the sugar which may then be available for distribution from 
all sources. Upon receipt of notice from the United States Food 
Administration that any shipment of sugar by the refiner or 
manufacturer to any State or States specified, or the shipment 
thereto of sugar of a given percentage of the refiner’s or manu¬ 
facturer’s total shipments, will give such State or district more 
than its fair share of the sugar which may then be available for 
distribution, the refiner or manufacturer shall not ship upon 
certificates issued by Federal Food Administrators of the State or 
States named a greater percentage of his total shipments in any 
prescribed period than is named in said notice. 

Rule 7. Sugar to be delivered only on receipt of sugar- 
distribution certificates. —On and after July 1, 1918, the 
manufacturer or refiner shall not ship or deliver sugar to any 
person whomsoever until he has received from such purchaser a 
certificate or certificates issued by a Federal Food Administrator 
to some wholesaler, retailer, public eating place, manufacturer, 
baker, or other person in his State, certifying that the total 
amount of sugar to be sold or delivered will not give the person 
to whom issued more than his fair share of the sugar then avail¬ 
able for distribution in the United States. Such certificate shall 
not be valid unless it is indorsed by the person to whom issued 
and also by any other person through whose hands it has passed. 

Note. —The foregoing rule is an amendment of rule 7 as effective May 15, 
1918, which required certificates only upon delivery to manufacturers. Under 
the above rule certificates must now be required in delivering sugar to any 
person whomsoever. 

Rule 8. Certificates to be mailed to federal food admin¬ 
istrator. —The licensee shall cancel immediately upon receipt and 
mail on the first of each month to the Federal Food Admin¬ 
istrator, whose name is signed thereto, all sugar certificates 
received by him during the preceding month. He shall keep a 
complete record of all shipments made, and of all certificates 
mailed to Federal Food Administrators under this rule. 

Rule 9. Sugar not to be used in manufacturing other 
products without obtaining sugar distribution certificates.— 
The licensee shall not, after May 15, 1918, remelt any sugar for 
the purpose of making invert sugar, syrup or molasses, or use 
sugar in the manufacture, bottling, packing, or preparation of 


43 


any other product until he has obtained from the Federal Food 
Administrator of the State where such product is manufactured 
certificates that the total amount of sugar to be so used will not 
exceed his fair share of the sugar then available for distribution. 
He shall use no sugar in excess of the amount called for by the 
certificate issued to him. Whenever sugar is used for such pur¬ 
poses, the licensee shall cancel certificates representing the 
amount of sugar used, and shall file them at the end of each 
month with the Federal Food Administrator whose name is signed 
thereto. 

Rule 10. Copy of invoice to be sent to federal food admin¬ 
istrator. —The licensee shall send daily to the Federal Food 
Administrator of the State in which the consignee is located a 
copy of the invoice on all shipments and deliveries of sugar. With 
the written consent of the United States Food Administration 
any other method of supplying this information to the Federal 
Food Administrator may be substituted. 

Rule 11. Standard package sizes prescribed.— On and after 
July 1, 1918, the manufacturer or refiner shall not sell cane or 
beet sugar for domestic use in the United States except in 
1-pound, 2-pound, 5-pound, 25-pound, or larger packages, without 
special permission in writing from the United States Food 
Administration. 

Note. —The 25-pound package may be eliminated after the close of the 
preserving season. 

B. Special Regulations Applying to Refiners of Cane Sugar. 

Rule 1. All possible sugar must be extracted.— The refiner 
shall operate his plant in such manner as to secure the largest 
extraction of sugar possible from the raw sugar, and shall not 
deliberately produce syrups or molasses from which sugar can 
be commercially extracted. The percentage of soft or off grade 
sugars produced by refiners in any month in comparison to their 
total output in that month shall not exceed the percentage pro¬ 
duced during the year 1917 without the written consent of the 
United States Food Administrator. 

Note. —The attention of the refiner is called to General Rule 23 govern¬ 
ing all licensees: 

Rule 23. Combination sales prohibited .—No licensee shall make or offer 
to make any combination sales of any food commodity, excepting that he 
may sell sugar in combination with corn meal at the rate of 1 pound of 
sugar to 2 or more of corn meal, or wheat flour in combination with one or 
more wheat flour substitutes as prescribed by the Wheat Conservation 
Rules: Provided, That in making any such combination sales the licensee 
shall name and charge a price for each of the articles so sold, which shall 
not represent more than a normal prewar margin over cost of any one of 
such articles. 

A combination sale is (1) any sale or delivery of two or more com¬ 
modities, or of two or more kinds or sizes of the same commodity, at a 


44 


price effective only if they are bought at the same time; or (2) any sale 
or delivery of a commodity upon condition that the purchaser shall buy 
some other commodity, or some other kind or size of the same commodity. 
See amended Rule 23. Effective September 1 , 1918, on page 37. 

Rule 2. Sugar to be sold at reasonable advance over cost. 
—The manufacturer shall sell his sugar at not more than a fair 
and reasonable advance over cost. 

Note. —The United States Food Administration will announce from time 
to time what advance it considers fair. 

Rule 3. Price of syrups and molasses. —The licensee shall not 
sell the following products when manufactured from imported 
raw cane sugar at prices to exceed those named below which are 
based on the cost of imported raw sugar to the refiner. 

Per gallon, Per gallon, 
in barrels. in bulk. 

Cents. Cents. 


Refiner’s syrups, highest grade (fancy filtered)... 55 50 

Refiner’s syrups, medium grade (filtered). 40 35 

Refiner’s syrups, low grade (unfiltered). 30 25 

Blackstrap molasses . 23 18 


The prices named are f. o. b. cars at primary markets or port 
of entry, or point of production if carrying same freight rate as 
from primary markets, net cash in 10 days without discount, 
and shall include brokerage and any profit taken by a distributor 
in tank cars direct from the refinery, but shall not include freight 
or tank car charges. 

Note. —Any questions in regard to the grading of fancy, medium and 
low grade syrups will be determined by the United States Food Adminis¬ 
tration committee on syrup valuations. 

Preference to domestic orders for syrup .—The Food Administration 
urgently requests that in accepting and filling orders for refiners’ syrups, 
preference be given domestic customers over exporters. If this is not done 
voluntarily it will be necessary to consider regulations limiting the export 
of such shipments. 

C. Special Regulations Applying to Producers of Beet Sugar. 

Rule 1. All possible sugar must be extracted. —The manu¬ 
facturer shall operate his plant in such manner as to secure the 
largest extraction of sugar possible from the sugar beet, and shall 
not deliberately produce molasses from which sugar can be com¬ 
mercially extracted. 

Rule 2. Unreasonable profit prohibited. —The manufacturer 
shall sell beet sugar, beet molasses, and beet pulp at not more 
than a fair and reasonable advance over cost. 

Note. —The United States Food Administration will announce from time 
to time what advance it considers fair. Until further notice any sales of 
beet sugar at a price in excess of the selling price, at the same time and 
place of standard granulated sugar made from cane produced in the United 
States (including insular territories), will be considered evidence of a 
violation of this rule. 

Beet molasses .—Until further notice any sales of beet molasses at a price 

45 





in excess of 18 cents a gallon in bulk or 23 cents a gallon in barrels f. o. b. 
factory net cash in 10 days without discount will be considered evidence 
of a violation of this rule. This price shall include brokerage and any 
profit taken by a distributor in tank cars direct from factory, but shall 
not include freight or tank car charges. 

Special License Regulations Governing Wholesalers, Jobbers, Import¬ 
ers, Retailers, and Brokers of Licensed Non-perishable Food Commodities. 

Note. —The following special regulations include all issued up to June 
the 15th, 1918. Licensees subject to these rules are, also, subject to the 
general rules and regulations. Wholesalers, jobbers, importers, retailers, 
or brokers who deal in any licensed commodity not referred to in the follow¬ 
ing rules should refer to the regulations governing that particular com¬ 
modity. Licensed, non-perishable food commodities for the purposes of 
the within regulations include the following: 

Barley flour. 

Canned or cured beef, pork, and mutton: 

Including— 

Veal, lamb, and ham. 

Canned corn beef. 

Chipped beef. 

Dried beef. 

Sliced bacon, whether in containers or not. 

Excluding— 

Beef juice. 

Bologna. 

Canned chili meat. 

Corn beef hash. 

Deviled ham. 

Luncheon tongue. 

Mincemeat. 

Potted meats. 

Sausage. 

Scrapple. 

Tripe. 

Veal loaf. 

Canned corn (including canned hulled corn). 

Canned dried beans (including canned pork and beans, and chili con 
carne with beans). 

Canned peas. 

Canned salmon. 

Canned sardines. 

Canned tomatoes (including paste, pulp, and puree). 

Coffee, green. 

Condensed, evaporated, or powdered milk. 

Cooking fats (including nut oil for cooking and edible tallow). 

Corn flour. 

Corn grits. 

Corn meal. 

Corn oil. 

Cornstarch (including laundry starch). 

Corn syrup. 

Dried or evaporated apples, peaches, prunes, raisins. 

Dried beans. 

Dried peas, pea seed (including cowpeas). 

Glucose. 

Hominy (including canned hominy). 


46 


Lard. 

Lard substitutes (including butterine, cocoanut oil butter). 

Maple compounds. 

Maple sugar. 

Maple syrup. 

Mixed and self-rising flours containing more than 50 per cent of licensed 
flours. 

Molasses (including beet molasses and sorghum). 

Oatmeal. 

Oleomargarine. 

Oleo oil. 

Rice, cleaned. 

Rice flour. 

Rolled oats. 

Rye flour. 

Sugar (including refined, clarified, plantation-washed, open-kettle, maple 
sugar, and corn sugar). 

Syrups (including maple syrup; excluding beverage, medicinal, and rock- 
candy syrups). 

Wheat flour (including grahams and whole-wheat flour). 


WHOLESALERS, JOBBERS, IMPORTERS, RETAILERS 

A. Special Rules Applying to Licensed Non-perishable Food Com¬ 
modities. 

(See sections B, €, D, E, F, G, and H, following for additional special 
rules for certain commodities.) 

Rule 1. Minimum weights of carload shipments. —All 
carload shipments of the following commodities shall be made in 
car lots of not less than the amount prescribed below unless a 
different minimum is authorized by special written permission 
of the United States Pood Administrator: Provided, however, 
That when cars of lower carrying capacity are used the maximum 
load which the car will carry may be used without such per¬ 
mission : 

Pounds. 


Canned peas, meats, tomatoes, beans, com, salmon. 60,000 

Canned sardines . 45,000 

Evaporated milk and condensed milk. 45,000 

(Exception: Milk in barrels may be loaded to floor space capacity, 
barrels on end.) 

Powdered milk . 40,000 

Dried beans and peas. 60,000 

Dried apples, peaches, prunes, and raisins. 60,000 

Flour (wheat, barley, corn, rye, and rice). 60,000 

Syrup (corn, glucose, sugar, molasses) except in barrels or in tank 

cars . 60,000 

Syrup (com, glucose, sugar, molasses) in barrels. Floor 

space capacity, barrels on end. 

Com meal, com grits, hominy, oatmeal, rolled oats. 60,000 

Cornstarch . 60,000 

(Exception: Starch in barrels shall be loaded to capacity in tiers 
on end.) 

Rice. 


47 


60,000 














Sugar . 60,000 

Cured beef, cured pork, cured mutton, lard and lard substitutes, 

straight or mixed, or mixed with fresh meat. 30,000 

Green coffee . 60,000 

Notes.—T his rule does not apply to mixed shipments of commodities 
that are not grouped in the same classification. 

The minimum weight provisions apply to intrastate as well as interstate 
shipments. These are trade units and not transportation regulations. 

Each one of two ot more licensees who consolidate their less than carload 
shipments for carload shipment is obligated to see that the car is loaded to 
at least the prescribed minimum. 

Rule 2. Must have only 60 days' supply of food commod¬ 
ities. —The licensee shall not, without the written consent of the 
United States Pood Administrator, or his duly authorized repre¬ 
sentative, keep on hand, or have in possession or under control, 
by contract or other arrangement, at any time, any food com¬ 
modities, not sold or contracted to be sold, in a quantity in excess 
of the reasonable requirements of his business for sale by him 
during a period of 60 days: Provided, however, That this rule 
shall not prevent the licensee from storing, or having in possession 
or under control, by contract or other arrangement, any of the 
following commodities in sufficient quantities to fill his reasonable 
requirements throughout the period of scant or no production: 
Canned peas, canned tomatoes, canned corn, canned salmon, 
canned sardines, dried prunes, dried apples, dried peaches, dried 
raisins, molasses in bulk, pure maple sugar, pure maple syrup. 
Provided, That this rule shall not prevent any licensee from 
having a carload of any commodity in transit in addition to a 
supply thereof sufficient to last until arrival of said carload. 

Notes. —See special rule O-l, governing wheat flour, which prohibits the 
licensee from having more than 30 days’ supply of wheat flour. See also 
special rule H-5 as to green coffee. 

This rule does not prohibit the storing of commodities for more than 
60 days; a quantity that is not in excess of the reasonable requirements of 
the licensee’s business for more than 60 days may be stored for a longer 
period than 60 days, if necessary. 

This rule applies to food commodities obtained before November 1, 1917, 
and on hand on that date, as well as to commodities obtained after that 
date. 

The words ‘' any food commodities ’ ’ in this rule and rules 3 and 4 apply 
only to the commodities listed at the beginning of the pamphlet. 

There must be a full carload in transit. It is not a compliance with the 
last proviso of the rule to place an order for one-fourth or one-half of a 
carload. 

Buie 2 corresponds to general rule 13, series B. It became effective 
November 1, 1917, and was amended January 28, 1918. 

Rule 3. Must not sell or deliver more than 60 days' 
supply of food commodities.— The licensee shall not sell or 
deliver to any person any food commodities without the consent 
of the United States Food Administraton if the licensee knows, 
or has reason to believe, that such a sale or delivery will give to 

48 





such person a supply of any such commodities not sold or con¬ 
tracted to be sold, in excess of his reasonable requirements for 
use or sale by him during the period of 60 days next succeeding 
such sale or delivery: Provided, however, That this rule shall not 
prevent sales or deliveries to any person of any of the following 
commodities: Canned peas, canned tomatoes, canned com, canned 
salmon, canned sardines, dried prunes, dried apples, dried 
peaches, dried raisins, molasses in bulk, pure maple sugar, pure 
maple syrup, in such quantities as will give such person a suffi¬ 
cient supply of such commodities to fill his reasonable require¬ 
ments throughout the period of scant or no production: And 
provided further, That this rule shall not prevent the sale or 
delivery of any food commodities to any person for the Federal, 
State, county or municipal governments, or for the government 
of any nation at war with Germany, or the sale or delivery of a 
carload of that commodity to any licensee having on hand only a 
sufficient supply to last until arrival of said carload. 

Notes. —See special rule C-3, governing wheat flour, which prohibits the 
licensee from selling or delivering more than 30 days’ supply of wheat 
flour, and note under special rule B-3 as to the amount of sugar that may 
be sold. 

Buie 3 corresponds to general rule 14, series B, which became effective 
November 1, 1917, and was amended January 28, 1918. 

Rule 4. Contracts for delivery more than 60 days ahead 
prohibited. —The licensee shall not make or have outstanding at 
any time any contract for the sale of any food commodities other 
than canned peas, canned tomatoes, canned corn, canned salmon, 
canned sardines, dried prunes, dried apples, dried peaches, 
dried raisins, molasses in bulk, pure maple sugar, pure maple 
syrup, for shipment or delivery more than 60 days after the 
making of such contract: Provided, however, That this rule shall 
not apply to contracts with the Federal, State, county or munic¬ 
ipal governments or with the government of any nation at war 
with Germany: Provided further, That an importer may sell 
goods to be imported for delivery on arrival. 

This rule shall not affect the validity of contracts enforceable 
at law made in good faith prior to October 15, 1917. 

Notes. —See special rule 'C-2, governing wheat flour, which prohibits the 
making of contracts for the delivery of wheat flour more than 30 days 
after the making of the contract. 

Buie 4 corresponds to general rule 15, series B. It became effective 
November 1, 1917. 

Rule 5. Must sell at reasonable advance over average 
purchase price. —The licensee, without regard to market or 
replacement value at the time of such sale, shall sell the following 
commodities at not more than a reasonable advance over the 
average purchase price of all lots of the same grade and size of 

49 


the same commodity in his possession or invoiced to him, not 
contracted to be sold: Wheat flour, mixed and self-rising flour, 
cleaned rice, rice flour, oleomargarine, lard, lard substitutes, oleo 
oil, cooking fats, condensed, evaporated or powdered milk, canned 
or cured beef, pork, or mutton, canned peas, canned dried beans, 
canned tomatoes, canned corn, canned salmon, canned sardines, 
dried prunes, dried apples, dried peaches, dried raisins, dried 
beans, dried peas, rye flour, barley flour, oatmeal, rolled oats, 
com grits, com meal, hominy, corn flour, cornstarch, com oil, 
corn syrup, glucose, syrups, molasses, maple sugar, maple com¬ 
pounds, clarified, plantation-washed and open-kettle sugars. 

The licensee shall keep a record of the manner in which such 
average has been arrived at, and he shall take as the cost of all 
stock remaining on hand from lots already averaged the average 
cost previously arrived at. 

In selling commodities not yet invoiced to him he shall sell 
at not more than a reasonable advance over the actual purchase 
price to him of all lots of the same grade and size of the same 
commodity purchased by him but not yet invoiced to him. 

(This rule corresponds to special rules 1 and 2, series B, governing 
Wholesalers and Retailers. It applies to all the commodities listed on 

page 46 except green coffee, for which see special rules H:, following:) 

Explanation. 


note. —This rule prohibits speculation in licensed commodities. 

The following is an example of the method by which the average oost 
shall be determined, taking flour as an example : 


Lot A . 

Lot B . 

Lot C . 

Barrels. 

. 20 

. 30 

. 25 

Cost per 
barrel. 
$10.50 
11.00 
10.75 

Total. 

$210.00 

330.00 

268.75 


75 


808.75 

Average cost per barrel. 




Reasonable advance . 





11.28 

Suppose that 35 barrels are then sold at $11.28 and 15 barrels purchased 
at $11. The calculation for further sales will then be made as follows: 

Cost per 

Barrels remaining on hand from lot pre- Barrels. barrel. Total. 

viously averaged . 40 $10.78 $431.20 

Lot D (new purchase). 15 11.00 165 00 


55 596.20 

Average cost per barrel 
Reasonable advance ... 


Selling price .. 11.34 

Neither the Food Administration nor any other branch of the Govern- 

50 


10.84 

.50 



















ment has prescribed uniform cost accounting systems for either wholesale 
or retail food distributors. The Government has not, therefore, indicated 
how the licensee, in dealing with a commodity covered by the reasonable 
profit rule, shall dispose of cartage, interest, or other special charges, but 
it does expressly forbid the employment of such charges with the purpose, 
or with the effect , of increasing the licensee’s profit above his own reason¬ 
able prewar level. 

The licensee shall not, in calculating cost, include accruals or payments 
of Federal income, corporation or excess profits taxes. 

A wholesaler who also does a retail business is not required to sell to 
both classes of customers at the same price; and a merchant, if he desires, 
may make prices in the case of cash sales, or sales upon which he does not 
have to perform the delivery service, different from his prices when credit 
is given or delivery made. The test is, are the commodities being sold at 
not more than a reasonable advance over the average price? 

Regarding special discounts to favored customers, see General License 
Regulations No. I, Rule 5, relating to discriminatory charges. If the con¬ 
sumer does not get the benefit of the discount and the retailer retains it 
in addition to his allowed profit, then the retailer is selling at an unreason¬ 
able advance. The giving of special discounts to favored customers by 
wholesalers at least tends to cause the wholesaler to sell to other customers 
at a greater advance than he would if no special discounts to favored 
customers were given. The United States Food Administration intends to 
scrutinize all transactions involving special discounts and rebates of every 
kind given by licensees. 


Maximum Margins on Sales by V/holesalers to Retailers. 






Commodities. 

Sugar . 

Wheat flour . 

Lard, lard substitutes, bulk (packages of 50 

pounds or over). 

Standard hams, bacon. 

All flours (except wheat).) 

Lard and lard substitutes, in packages (less | 

than 50 pounds). 

Condensed, evaporated milk. 

Blackstrap molasses in barrels.j 

Rice, hominy, grits, oatmeal, rolled oats, corn 
meal, beans, in bulk (packages of 25 pounds 

or over) . 

Rice, corn meal, hominy, grits, oatmeal, self-' 
rising and prepared flour, and rolled oats, 

all in packages. 

Corn oil, corn syrup, sugarhouse syrup, mixed 
sugar and corn syrup, and cottonseed oil.. 
Standard and extra standard licensed canned • 
peas, tomatoes, corn, and canned dried 
beans, and pink, chum, and red salmon, 

and all domestic sardines. 

All licensed dried prunes, apples, peaches, 
raisins . 


Maximum margins. 
15-35 cents per 100 pounds. 
50-75 cents per barrel. 

1*4-2 cents per pound. 

1-2 cents per pound. 


8-10 per cent. 


10-12 % per cent. 


12-15 per cent. 



Note. —Percentages should be figured on the wholesaler’s selling price. 
The maximum margin on sugar has been increased to 35 cents per 100 
pounds for wholesale grocers and food jobbers who actually perform, as to 
substantially all the sugar handled by them, the functions of buying, ware¬ 
housing, selling, and distributing. But this maximum margin is not allowed 


51 















where such service is not performed. Margins for sugar dealers are not 
changed. Rye flour has been transferred to the 8-10 per cent classification. 
Prepared flours, sugar-house syrup, and mixed sugar and corn syrup, have 
been placed in the 12-15 per cent classification. All domestic sardines and 
all grades of licensed dried fruits are now included within the 12-15 per 
cent classification. 

Any gross margins above delivered cost upon sales in unbrolcen cases to 
retailers in excess of the foregoing margins will be regarded as prima facie 
evidence of a violation of the statute and the regulations. 

In case the licensee breaks original package he may add to his cost the 
actual cost of such repacking, in no case to exceed 5 per cent. 

It should be noted that the above differentials are maximum margins, 
which must not be exceeded by the wholesaler. 

Licensed commodities not covered by the above margins shall not be sold 
at a margin above delivered cost to the wholesaler—average purchase price 
plus freight to public railway terminal in jobber’s city or town—of the 
particular goods sold which will yield any greater profit than the dealer 
customarily enjoyed on the same commodity in the prewar period on an 
even market under freely competitive conditions. 

High margins, even if customary during prewar period, are not justifi¬ 
able now. Unreasonable margins are not excused by lower margins on 
other transactions in the same commodity or in other commodities. 

The margins named are ample to include all ordinary carrying charges. 
If general conditions should later necessitate the carrying of goods for a 
longer period than usual, further consideration will be given to this feature. 
In determining the cost of dried fruit, the licensee may add to his purchase 
price not more than one-eighth cent per pound per month on dried fruit 
actually carried in cold storage between May 1 and November 1, not to ex¬ 
ceed three-fourths cent per pound, on any particular lot of goods. 

Any change from the prewar custom in cash discount terms, cartage, or 
other charges, which tends to or results in increasing the margin of profit 
allowed, will be dealt with as an unfair practice. 

What Resales Are Justifiable. 

(The following applies to all licensees governed by these rules:) 

General rule 6 reads as follows: 1 1 The licensee, in selling food commodi¬ 
ties, shall keep such commodities moving to the consumer in as direct a 
line as practicable and without unreasonable delay. Resales within the 
same trade without reasonable justification, especially if tending to result 
in a higher market price to the retailer or consumer, will be dealt with as 
an unfair practice.” 

Service. —Any transactions that savor of trading in which a profit accrues 
to the dealer without corresponding service, are clear violations of the rule 
and will subject the offender to revocation of his license and to such other 
penalty as the law provides. A resale that is in keeping with one of the 
following principles will be considered lawful under general rule 6: 

A. Continuous service. —The seller may customarily and continuously 
serve in less than carload lots wholesale grocers who are serving retail 
grocers but who are unable for some sufficient and legitimate reason to pur¬ 
chase direct from the source of supply. 

B. Carload buying. —A wholesaler or jobber may enjoy the benefit of 
carload rates from distant points and sell to smaller wholesale grocers who 
are unable to buy the commodity in carload lots. 

C. Warehousing. —A wholesaler or jobber may continuously and custom¬ 
arily furnish cold storage or other warehousing service and sell to whole¬ 
sale grocers who have not adequate facilities of that character. 

D Surplus stocks. —A wholesaler may dispose of surplus stocks bought, 
not for speculation, but in good faith for the reasonably anticipated 

52 


requirements of his business under the rules and regulations and which he 
finds himself unable to dispose of to his regular customers. The fact that 
such goods have not been warehoused by such wholesaler will be regarded 
as prima facie evidence that they were not bought in good faith. 

Only one resale permitted. —The distributor who purchases from a whole¬ 
saler or jobber must not, under any circumstances, resell the goods in ques¬ 
tion to a wholesaler or jobber, but must distribute directly to retailers or 
consumers. 

Maximum Margins on Resales Justified by Performance of Actual 
Service Specified in A, B, C, and D, Above. 

1. Seller’s margins. —The margin of profit enjoyed by the wholesaler or 
jobber selling to another wholesaler or jobber shall in no case exceed one- 
half of the maximum margin named for the particular commodity in the 
wholesaler’s list above. These margins shall include all cartage, storage, 
interest, and other charges. 

2. Purchaser’s margins. —The distributor who has thus purchased within 
the trade shall sell the goods so purchased at not more than the lower mar¬ 
gin indicated in the list above. 

Maximum Margin on Other Resales. 

3. On all other resales such as accommodation sales, commonly known 
in the trade as “pick-ups,” only one wholesale profit (as indicated by the 
above maximum margins) is allowed, but this one allowable profit may be 
divided between the wholesalers as they determine. 

Sugar Resales. 

Bugar must not be resold except in accordance with special sugar rules 1 
and 2, governing wholesale dealers in sugar, immediately following. 

Not Required to Average Different Brands. 

The licensee is not required to average the purchase price of commodities 
of different brands that are of a proprietary nature, even though the grade 
and size are the same. He may average, however, if he desires. 

Ek Refined Sugar. 

Rule 1. Profit on sugar purchased from refiner. —No 
wholesale dealer in refined sugar who purchases such sugar from 
the producer or refiner, direct or through a broker, shall sell 
such sugar at an advance over the refiner’s list price at 
which he purchased such sugar greater than the normal 
margin charged by wholesale dealers in refined sugar in the same 
locality or such margin as may hereafter be established by the 
Food Administration. 

(This rule corresponds to special rule 1, Series B, Governing Wholesale 
Dealers in Sugar.) 

Note. —This rule applies to plantation granulated sugar. 

Rule 2. Profit on sugar obtained from other than refiner. 
—It will be considered an unreasonable practice if two or more 
wholesale dealers handle the same sugar at a greater total margin 
than that prescribed by Rule 1. No wholesale dealer or other 
licensee who purchases refined sugar from any person other than 
the producer or refiner shall sell such sugar to a retailer or to a 
person using such sugar in manufacturing at a price representing 
an advance over the producer’s or refiner’s list price on the day 
of such sale greater than the advance allowed by the preceding 
rule to a wholesale dealer in the locality where such sale occurs. 

53 


(This rule corresponds to special rule 2, Series B, Governing Wholesale 
Dealers in Sugar.) 

Rule 3. Retail sales must be made at not more than 
reasonable advance over cost. —The licensee shall sell sugar 
at retail at not more than a reasonable advance over the actual 
purchase price of the particular goods sold, without regard to 
the market or replacement value at the time of such sale. 

Wholesale Grocers and Jobbers—Margins. 

See schedule of margins under special rule A-5. 

Retail Dealers, Licensed and Unlicensed—Margins. 

The Food Administration has not the power to license retailers doing a 
business of less than $100,000 a year, but they are nevertheless subject to 
the other provisions of the statute, including those as to hoarding, specula¬ 
tion, combination, and excessive profits. 

The United States Food Administration regards 1 cent a pound as the 
reasonable margin on sugar sold at retail. 

Restriction on Quantities of Sugar to Be Sold. 

Wholesale grocers should exercise great care, according to the demands 
of the retailer, and should not sell sugar in quantities in excess of 300 to 
1,000 pounds at a time to a buyer. Sugar should not be shipped without a 
positive order from the buyer. Wholesale grocers should use every pre¬ 
caution at their command to prevent duplication of sales which may give 
to a retailer the opportunity to have more sugar than is necessary for con¬ 
servative distribution. 

Retailers: Sugar should be sold to town and city consumers in not more 
than 2 to 5 pound quantities; to farm and rural customers in not more 
than 5 to 10 pound quantities. 

The Federal Food Administrator in each State may grant exceptions to 
the above rule concerning the quantities which wholesale and retail grocers 
may sell to any customer at one time. The Federal Administrator in 
each State may make such exceptions in accordance with the facts presented 
to him by the dealer desiring such privilege to sell sugar in quantities 
larger than above stated and the administrator should at once report 
such exceptions to the Distribution Division of the Food Administration 
at Washington. In no case, however, may sugar be sold in such quantities 
as to result in hoarding. 

Retailers may sell consumers sugar in quantities sufficient for home 
canning purposes by obtaining a prescribed certificate that the sugar is to 
be used for such purpose and that any surplus will be returned. For fur¬ 
ther information consult your Federal Food Administrator. 

Mail-order houses may offer sugar for home canning in 25-pound lots, 
using the above-mentioned certificate plan. 

Advertising. 

The Food Administrator does not approve of advertisements of sugar 
naming special prices, deals, schemes or other inducements that would 
tend to lead the consumer to purchase sugar in quantities larger than his 
ordinary requirements, and we ask that such advertisements be discon¬ 
tinued. 

The Food Administration does not object to advertisements directing 
attention to a particular brand, style or quality of sugar. 

Rule 4. Sugar to be distributed equitably.— The wholesaler 
and retailer shall distribute sugar equitably among his customers, 

54 


so that no one of such customers receives more than his fair share 
of the sugar which may then be available for distribution. He 
shall not sell sugar to individual consumers residing in towns or 
cities in more than 2-pound lots, nor to individual consumers in 
rural or farm communities in more than 5-pound lots, without 
the written permission of the Federal Food Administrator of 
his State, provided that without such permission, additional sugar 
may be delivered for home canning upon the purchaser complying 
with such requirements as may be issued by the Federal Food 
Administrator for the State in question. 

Rule 5. Sugar to be delivered by wholesalers only upon 
receipt of sugar distribution certificates. —On and after July 
1, 1918, the wholesaler or jobber shall not ship or deliver sugar to 
any person whomsoever until he has received from such purchaser 
a certificate or certificates issued by a Federal Food Adminis¬ 
trator to some retailer, public eating place, manufacturer, baker 
or other person in his State, certifying that the total amount 
of sugar to be sold or delivered upon such certificate will not give 
the person to whom issued more than his fair share of the sugar 
then available for distribution in the United States. Such certi¬ 
ficate shall not be valid unless indorsed by the person to whom 
issued and also by any other person through whose hands it ha9 
passed. .j j|-!j 

Note. —This rule applies to all deliveries by wholesalers and supersedes 
formeT rule 5, effective May 15, which required certificates only in deliver¬ 
ing to manufacturers. This rule applies to all deliveries, whether contracts 
therefor were made before July 1 or not. It applies to all types of cane 
and beet sugar without exception. 

Rule 6. Sugar to be delivered by retailers to public eating 

PLACES, MANUFACTURERS, AND BAKERS ONLY ON RECEIPT OF SUGAR 

distribution certificates. —On and after July 1, 1918, a retailer 
shall not ship or deliver sugar to any person operating a public 
eating place, or operating a boarding house or institution serving 
regularly 25 persons or more, or engaged in the business of manu¬ 
facturing, bottling, packing, or preparing products (including 
bakery products) in which sugar is used until he has received 
from such purchaser a certificate or certificates duly indorsed by 
the buyer and issued to the buyer by the Federal Food Admin¬ 
istrator for the State in which the buyer is located, certifying 
that the total amount of sugar to be sold or delivered will not 
give the buyer more than his fair share of the sugar then available 
for distribution in the United States. 

Note. —The retailer may deliver without a “Sugar Distribution Certifi¬ 
cate’ ’ to individual consumers complying with any agreement made by 
him in obtaining his own certificate from the Federal Food Administrator 
in his State. 


55 


Rule 7. Wholesaler and retailer to but only on present¬ 
ing CERTIFICATES, AND TO USE SUGAR IN THEIR OWN MANUFAC¬ 
TURING ONLY UPON OBTAINING MANUFACTURERS’ CERTIFICATES.— 

The wholesaler or retailer shall not, after July 1, 1918, use sugar 
in the manufacturing, bottling, packing, or preparation of any 
other product until he has obtained from the Federal Food 
Administrator of the State where such product is manufactured 
or prepared, certificates that the total amount of sugar to be so 
used will not exceed his fair share of the sugar then available 
for distribution. He shall use no sugar in excess of the amount 
called for in the certificates issued to him. He shall not buy sugar 
for any purpose without turning in certificates issued to him or 
turned in to him by other persons upon deliveries of sugar for 
the amount purchased. 

Note. —This rule supersedes former rule 7, effective May 15, 1918. 

C. Wheat Flour. 

Mixed flour that consists of more than 50 per cent wheat flour 
is considered to be wheat flour for the purpose of these rules 
except rules 8, 10 and 12. 

Rule 1. Flour supply limited to 30 days’ requirements.— 
No licensee dealing in wheat flour shall keep on hand or have in 
his possession at any time any such flour in a quantity in excess 
of the reasonable requirements of his business for use or sale by 
him during the period of 30 days, provided that this rule shall 
not prevent any licensee from having on hand not to exceed a 
carload of such flour. 

Note/—T his rule corresponds to special rule 6, Series B, Governing Heal¬ 
ers in Wheat Flour. 

It is not necessary to dispose of any particular quantity of flour within 
30 days after it is received. The rule is complied with if at any given 
time there is on hand a supply not in excess of reasonable requirements 
during the period of 30 days next ensuing, and orders may be placed eo 
that the permitted stock may be maintained. 

Rule 2. Contracts for delivery of flour more than 30 
days ahead prohibited.— No licensee dealing in wheat flour shall 
make or have outstanding at any time any contract for the sale 
of wheat flour except such contracts as require shipment or 
delivery within 30 days after the making of such contracts: 
Provided, however , That this rule shall not apply to contracts 
with the Federal Government, or with the government of any 
nation at war with Germany. 

(This rule corresponds to special rule 7, Series B, Governing Dealers in 
Wheat Flour.) 

Rule 3. Must not sell or deliver more than 30 days’ 
supply of flour. —No licensee dealing in wheat flour shall deliver 


56 


any such flour to any person knowing that such delivery will 
give such person a supply thereof in excess of his reasonable 
requirements for use or sale by him during the period of 30 days 
next succeeding the delivery thereof: Provided , That this rule 
shall not prevent a licensee from selling or delivering to another 
licensee a carload of such flour. 

(This rule corresponds to special rule 8, Series B, Governing Dealers in 
Wheat Flour.) 

Rule 4. Must use prescribed flour contract form.— The 
licensee shall not sell any wheat flour in quantities of 25 barrels 
or more except by signed contract in the form prescribed below. 
The licensee shall not sell wheat flour in quantities less than 25 
barrels without stipulating that the terms of the contract pre¬ 
scribed below shall prevail. 

(This Tule corresponds to special rule 9, Series B, Governing Dealers in 
Wheat Flour.) 

Form of Contract Referred to in Rule C-4. 

Contract No. Date. 19... . 

.. o f 

.sell, and 


of.buy, the 

following articles, on the terms and conditions stated below: 

Time of 

(Shipment. 

( Delivery within. 

Shipment or delivery periods to be. 

Destination . 

Routing . 

Terms payment. Draft, through. 

Bank of. 

No. of Give rate basis, destination, 

packages. Size. Kind. Brand. Price. or place of delivery. 


TERMS AND CONDITIONS. 

(1) Food Administration regulations .—It is understood and agreed that 
the buyer and seller shall conform to all regulations promulgated by the 
United States Food Administration. 

(2) Net weights .—Flour shall be sold upon the basis of net weights when 
packed, and the determining factor as to weight shall be a moisture content 
not in excess of Government allowance. 

(3) Contract not subject to change .—It is understood that there are no 
conditions, representations, or warranties, verbal or otherwise, and. that 
there shall be no assignment or cancellation of this contract, except as 


57 






















herein stated, and no agent or representative has authority to modify the 
printed terms of this contract. 

(4) Shipment within 30 days. —It is understood and agreed that the 
above order shall be shipped or delivered as specified within 30 calendar 
days, dated from time when the order is taken. 

(5) Nonextension of time. —There shall be no extension of the time of 
shipment or delivery under this contract, except as herein specified. 

(6) Buyer’s nonfulfillment of contract. —If the buyer shall refuse to 
accept any shipment or delivery as specified hereunder, or fail to file with 
the seller within 15 days of the date of the order, shipping instructions 
permitting the seller to ship at his option within the remaining period of the 
contract, or to perform any of the terms of this agreement, then the seller 
may, at its option, and upon due notice to the buyer, cancel this contract 
and the buyer shall pay to the seller an entry charge of 25 cents per barrel 
on flour and 50 cents per ton on feed. The seller may pursue such other 
remedies as the law may provide. On the refusal or neglect by the buyer 
to accept any shipment or delivery as specified hereunder and (or) to per¬ 
form any of the terms of this agreement the seller may treat such refusal 
or neglect as a breach of the entire contract, for which the seller is entitled 
immediately to avail himself of any rights in this contract specified; but, 
except for reason or reasons specified herein, if the shipment or delivery as 
specified is not executed within 30 days from date of contract, it shall be 
canceled, and payment of charges above specified shall be made by the 
buyer to the seller. 


(7) Seller’s nonfulfillment of contract. —If the seller shall fail (except 
for the reasons herein specified) to make any shipment or delivery as spe¬ 
cified within the time indicated by this contract, then the buyer may, at 
his option, cancel the shipment or delivery, and in event of such default 
the seller shall, upon demand, pay to the buyer the sum of 25 cents per 
barrel on flour, and 50 cents per ton on feed, and the buyer may pursue 
such other remedies as the law provides. 

(8) Exceptions to seller’s responsibility. —For delay in making shipment 
or delivery as specified, occurring through the fulfillment of Government 
contracts, or through fire, strikes, or labor difficulties, or failure of govern¬ 
mental agencies to supply wheat, acts of carriers, or similar causes beyond 
the control of the seller, the seller is not responsible. 

(9) Package differentials. —Both buyer and seller agree herewith to 
accept the basis of package differentials specified on the back hereof. 

., Seller. 

By ... 


By 


, Buyer, 


Wheat Conservation Rules. 

The following wheat conservation rules, which correspond to special rules 
23, 27, 28, 29, 30, 31 and 32, Series B, governing wholesalers and retail¬ 
ers of wheat flour, are promulgated for the purpose of assuring an ade¬ 
quate supply and equitable distribution of wheat flour for purposes essen¬ 
tial to the national security and defense and to the successful prosecution 
of the war. Under existing conditions, the unrestricted distribution of flour 
is deemed to be clearly an unjust, unreasonable, and wasteful practice. 

Rule 5. Wheat flour not to be sold or used for purposes 
other than human consumption.— No licensee shall sell, use, 
or deliver to any person wheat flour of any grade for any purpose 

58 






other than the manufacture of human food, except by special 
written permission of the United States Food Administrator. 

Note. —Requests for such permission shall be made to the United States 
Food Administration, Distribution Division, Washington, D. C., stating 
specifically amounts of, and purposes for which, such flour is to be used. 

Rule 6. Wholesalers must reduce purchases op wheat 
flour 30 per cent.— The licensee dealing in wheat flour at whole¬ 
sale shall not, without the written permission of the United States 
Food Administrator, purchase for delivery to him during the 
three months’ period from February 1 to April 30, and May 1 
to July 31, in 1918, more than 70 per cent of his normal require¬ 
ments of flour for such period. The amount of purchases made 
in the corresponding three-months periods in 1917 will be 
regarded as prima facie evidence of such normal requirements. 

Note. —In calculating wheat flour for the purpose of this rule and rule 
7 the licensee shall include the wheat flour contained in mixed flours of 
any kind which he may handle. 

Rule 7. Must distribute flour equitably. —The licensee 
dealing in wheat flour at wholesale should distribute the 70 per 
cent of his requirements, purchased in accordance with rule 6, 
through his customary markets and channels of distribution in 
such manner that each of his customers receives his fair share 
thereof, and that during the three-month periods from February 
1, 1918, to April 30, 1918, and from May 1, 1918, to July 31, 1918, 
no town, city, State, or district receives from the licensee more 
than 70 per cent of the amount it received in the corresponding 
three-month period in the year 1917. He shall not seek new 
markets or channels of distribution, and sales of large quantities 
to new customers will be regarded prima facie as a violation of 
this rule. 

Note.—S ee note to rule 6 regarding mixed flours. 

Rule 8. Retailers or consumers must buy wheat-flour 
substitutes from licensee or elsewhere.— The licensee dealing 
in wheat flour at wholesale shall not, without the written permis¬ 
sion of the United States Food Administration, ship or deliver 
such flour to any retailer or consumer unless the buyer purchases 
at the same time, or the licensee satisfies himself that the buyer 
has purchased, 1 pound of wheat-flour substitutes for every pound 
of wheat flour purchased, or, in the case of whole wheat or 
graham flour containing at least 95 per cent of the entire wheat, 
3 pounds of wheat-flour substitutes for every 5 pounds of such 
whole wheat or graham flour purchased. 

Wheat-flour substitutes for the purpose of this rule and rules 
9, 12 and 13, shall include hominy, corn grits, com meal, corn 

59 


flour, edible cornstarch, barley flour, rolled oats, oatmeal, rice, 
rice flour, buckwheat flour, potato flour, sweet potato flour, soya 
bean flour, milo, kaffir, and feterita flours and meals. 

Rule 9. Retailers and consumers required to but substi¬ 
tutes WITH MIXED FLOUR FROM LICENSEE OR ELSEWHERE.— No 
licensee manufacturing or distributing at wholesale mixed flour 
containing more than 50 per cent of wheat flour shall, without 
the permission of the United States Food Administrator, sell or 
deliver any such mixed flour to the retailer or consumer thereof, 
unless the buyer purchases at the same time or the licensee 
satisfies himself that the buyer has purchased an amount of 
wheat-flour substitutes sufficient to make the total amount of 
such substitutes, including the substitutes in the mixed flour, 
equal to the total amount of wheat flour in such mixed flour. 

Rule 10. Bakers must be required to buy substitutes from 
licensee or elsewhere. —The licensee dealing in wheat flour at 
wholesale shall not, on and after April 14, 1918, ship or deliver 
to any person engaged in the business of baking bread or rolls, 
any wheat flour except whole-wheat flour unless the buyer pur¬ 
chases at the same time or the licensee satisfies himself that the 
buyer has purchased 1 pound of wheat-flour substitutes for every 
3 pounds of wheat flour purchased. 

Wheat-flour substitutes for the purpose of this rule and rule 
11 shall include bran, shorts and middlings, corn flour, corn meal, 
edible cornstarch, hominy, corn grits, barley flour, rolled oats, 
oatmeal, rice, rice flour, buckwheat flour, potato flour, sweet 
potato flour, milo, kaffir and feterita flours and meals, soya bean 
flour, peanut flour, tapioca or cassava flour, taro flour, banana 
flour, and other products of a similar nature which may be used 
in baking. 

Graham or whole-wheat flour containing 25 per cent of bran, 
shorts, or middlings may be sold to persons manufacturing 
bakery products without substitutes, but if it contains less than 
25 per cent it must only be sold with an amount of wheat-flour 
substitutes which, added to the bran, shorts and middlings con¬ 
tained in the graham or whole-wheat flour (everything over 75 
per cent extraction) will equal the total amount of substitutes 
required. 

Potatoes may be sold to persons manufacturing bakery products 
as a wheat-flour substitute in the proportion of 4 pounds of 
potatoes in place of 1 pound of other substitutes. 

Note to Rules 8 and 10.—A written statement from the buyer that he 
has purchased a given quantity and kind of wheat flour substitutes, not 
balanced by other purchases of wheat flour, may be accepted as satisfac¬ 
tory evidence of the facts stated. 

Attention is called to the fact that the list of substitutes set forth in 
special rule 10 applicable to sales to bakers of bread and rolls is more com- 


60 


preliensive than the list of substitutes set forth in special rule 8 applicable 
to sales to dealers or consumers. Bran, shorts, and middlings, and several 
other commodities that are not contained in the list for dealers and con¬ 
sumers are contained in the list for bakers. 11 Other products of a similar 
nature” may also be sold to bakers, and wide latitude is permissible in 
extending the list. 

For the purpose of sales to dealers or consumers substitutes are none 
other than those designated in the list set forth in special rule 8. “Other 
products of a similar nature” are not to be included. Only products 
specifically mentioned are to be included. For example: 

“Hominy” does not include canned hominy. 

“Barley flour” does not include barley. 

“Rice” does not include puffed rice. 

“Rice flour” does not include rice polish. 

“Corn grits” does not include corn flakes. 

“Rolled oats” does not include “ fruited oats." 

* ‘ Barley flour ’ ’ does not include barley grits. 

Rule 8 specifies certain commodities that, for the purposes of that rule, 
are wheat-flour substitutes to be sold to retailers and consumers with wheat 
flour. Wheat-flour substitutes may be sold in cartons or in any other form, 
and under trade names. 

In reply to inquiries as to whether certain preparations of food com¬ 
modities, such as Jones’s Health Bran, Smith’s Fruit Oats, Brown’s Corn 
Chips, etc., are wheat-flour substitutes, we can only say that they are sub¬ 
stitutes if they are included in the list contained in the above rules. There 
are innumerable brands of cereal foods; the Food Administration is not 
familiar with the ingredients contained in many of them. Licensees pro¬ 
posing to sell such preparations as wheat-flour substitutes must assume the 
responsibility of determining whether or not they are complying with the 
rules and regulations. 

If a licensee submits a statement of the exact ingredients, with percent¬ 
ages thereof, and process of manufacture, of a particular cereal food a 
ruling will be made as to whether or not that particular commodity may be 
sold as a wheat-flour substitute. 

The wheat-flour substitutes listed are intended to include only substitutes 
edible by human beings, and unbolted corn meal, hominy, and other prod¬ 
ucts which are suitable only for cattle feed may not be sold or counted as 
wheat-flour substitutes. 

Red dog feed is considered a substitute under rule 10. 

Rules 8 and 10 must be observed in making deliveries on contracts entered 
into prior to January 28, 1918, since the rules provide that the licensee shall 
not sell or deliver wheat flour except in accordance with the requirements 
of the rule. 

A licensee in selling or delivering wheat flour to any Federal, State, 
county, or municipal institution, such as a penitentiary, asylum, hospital, 
or university, college, or school, or to any private hospital, asylum, sana¬ 
torium, university, college, or school, whether charitable or noncharitable, 
must require the purchaser to buy (or satisfy himself that the purchaser 
has bought elsewhere) at least 1 pound of wheat-flour substitutes for every 
3 pounds of wheat flour purchased to be used in baking bread or rolls, and 
at least 1 pound of wheat-flour substitutes for each pound of wheat flour 
purchased for other purposes: Provided , That exceptions may be made by 
Federal food administrators as to hospitals, asylums, and sanatoriums upon 
written statement of the physician in charge that the health of patients 
requires a larger allotment of wheat flour than that specified above. 

Licensees in selling or delivering wheat flour to ships must conform to 
the following: 


61 


The licensee shall not sell or deliver wheat flour to a ship, whether 
freight or passenger, under the American flag or to a foreign freight or 
passenger ship, unless the purchaser buys at the same time, or the licensee 
satisfies himself that the purchaser has bought since January 28, 1918, 1 
pound of wheat-flour substitutes for every 3 pounds of wheat flour bought 
to be used in baking bread or rolls, and 1 pound of wheat-flour substitutes 
for each pound of wheat flour bought for other purposes: Provided , That 
if the ship uses 3 or more barrels of flour and meal a month and has not 
obtained a baking license or applied for the same, the licensee shall require 
the purchaser to buy, or satisfy himself that the purchaser has bought since 
January 28, 1918, 1 pound of wheat-flour substitutes for each pound of 
wheat flour bought, whether or not it is to be used in baking bread. 

The buyer of wheat flour is not entitled to any credit for purchases of 
wheat-flour substitutes made prior to January 28, 1918, the date on which 
the rules became effective. If the buyer does not purchase the designated 
quantity of substitutes from the licensee the licensee must satisfy himself 
that the buyer has purchased the designated quantity on or after January 
28, 1918. 

Bakers, including hotels, restaurants, and boarding houses, who use less 
than 3 barrels of flour and meal a month are not required to obtain a 
baking license. However, such a baker may obtain a license and subject 
himself to the rules and regulations governing baking licensees. If he 
does so, he thereupon shall become entitled to purchase wheat flour to be 
used in baking bread or rolls on the basis of 1 pound of substitutes for 
every 3 pounds of wheat flour. If he does not subject himself to license, 
he must purchase, or satisfy the dealer in wheat flour that he has purchased 
elsewhere, 1 pound of substitutes for each pound of wheat flour purchased. 

A licensee is not required to sell or deliver wheat flour substitutes when 
selling or delivering wheat flour to churches to be used in the observance 
of religious rites that require the use of pure wheat flour. 

A licensee selling out his business must require the purchaser, if wheat 
flour is included in the goods sold, either to buy the designated quantity of 
wheat flour substitutes, or the licensee must satisfy himself that the pur¬ 
chaser has bought the designated quantity on or subsequent to January 
28, 1918. 

Licensees in selling or delivering gluten flour must require the purchaser 
to purchase the required quantities of wheat flour substitutes, except in 
selling or delivering gluten flour containing not less than 40 per cent gluten 
to a person engaged in the business of manufacturing for sale gluten bread 
or other products made entirely from such flour. 

Rule 11. Bakers required to buy substitutes with mixed 
flour from licensee or elsewhere. —The licensee manufac¬ 
turing or distributing at wholesale mixed flour containing more 
than 75 per cent of wheat flour shall not on and after February 
24, 1918, sell or deliver to any person engaged in the business of 
baking bread or rolls any such flour, unless the buyer purchases 
at the same time or the licensee satisfies himself that the buyer 
has purchased 1 pound of wheat-flour substitutes for every 3 
pounds of such flour purchased. Mixed flour containing less than 
75 per cent of wheat flour may be sold to persons engaged in the 
business of baking bread or rolls without wheat substitutes. 

Rule 12. Retailers must sell substitutes. —The licensee 
dealing in wheat flour at retail shall not, without the written 


62 


permission of the United States Food Administrator, sell wheat 
flour to any person unless such person purchases from him at 
the same time 1 pound of wheat flour substitutes for every pound 
of wheat flour purchased, or in case of whole wheat or graham 
flour containing at least 95 per cent of the entire wheat, six- 
tenths of a pound of wheat flour substitutes for every pound of 
such whole wheat or graham flour purchased. 

Rule 13. Retailers of mixed flour required to sell substi¬ 
tutes. —The licensee dealing in mixed flour at retail shall not, 
without the written permission of the United States Food Admin¬ 
istrator, sell mixed flour containing more than 50 per cent of 
wheat flour to any person, unless such person purchases from him 
at the same time an amount of wheat-flour substitutes sufficient 
to make the total amount of such substitutes, including substitutes 
in the mixed flour, equal to the total amount of wheat flour in 
such mixed flour. 

Rule 14. Amount of wheat flour that may be sold to 
individual consumers limited. —The licensee dealing in wheat 
flour at retail should distribute the flour which he receives as 
equitably as possible among his customers in such manner that no 
one of such customers shall receive more than his fair share 
thereof. He shall not, without the written permission of the 
United States Food Administrator, sell or deliver to individual 
consumers residing in towns or cities in quantities in excess of 
25 pounds, nor to any individual consumer in rural or farm 
communities in quantities in excess of 50 pounds. 

D. Corn Grits, Corn Meal, Hominy, Corn Flour, Refined Grits, Rye 
Flour, and Barley Flour. 

Rule 1. Sales contract must contain prescribed terms.— 
The licensee shall not sell corn meal, grits, corn flour, hominy, or 
refined grits in carload lots except spot sales for cash or upon the 
terms contained in the form of contract prescribed below. 
Discount for cash may be allowed by mutual agreement between 
the parties. Provided, however, That this rule shall not apply to 
sales made to any person for the Federal, State, county, or munic¬ 
ipal governments, or for the government of any nation at war 
with Germany. 

N 0TE; —i n Rule 1, supra, it is provided that the licensee shall not sell 
cornmeal, grits, corn flour, hominy, or refined grits in carload lots, except 
such sales for cash are upon the terms contained in the form of contract 
that is set out in the rule. The minimum loading prescribed by the Food 
Administration for carload lots of such products is 60,000 pounds and 
licensees selling 60,000 pounds or more of such products must conform to 
the rule in cases where delivery is made by wagon or truck as well as 
in cases where the products are shipped by rail. 

63 


Form of Contract Referred to in Special Rule D-l. 
Contract No. .19. .. . 


of 


sell and... 

buy the following articles on the terms and conditions stated below: 

Time of shipment. 

Shipment periods to be.. • • .. 

Routing. Destination. 

Terms: Cash, sight draft, demand draft, or arrival draft. 

Discount for cash... 

Bank of... ••••••• 

No. of pack- Price sacks Give rate basis, destination, 

ages. Size. Kind. Brand. included. or place of delivery. 


Buyer. 

Seller. 


Terms and Conditions. 

(1) Food Administration regulations. —It is understood and agreed that 
the buyer and seller shall conform to all regulations promulgated by the 
United States Food Administration. 

(2) Net weights. —Corn meal, grits, and corn flour, corn hominy, and 
refined grits shall be sold upon the basis of net weights when packed and 
the determining factor as to weight shall be moisture content not in excess 
of Government allowance. 

(3) Contract not subject to change. —It is understood that there are no 
conditions, representations, or warranties, verbal or otherwise, and that 
there shall be no assignment or cancellation of this contract, except as herein 
stated, and no agent or representative has authority to modify the printed 
terms of this contract. 

(4) Shipment within 60 days. —It is understood and agreed that the 
above order shall be shipped as specified within 60 calendar days, dating 
from time when order is taken. 

(5) Nonextension of time. —There shall be no extension of time of ship¬ 
ment under this contract except as herein specified. 

(6) Buyer’s nonfulfillment of contract. —If the buyer shall refuse to 
accept any shipment as specified hereunder or fail to file with the seller 
specifications with the order for immediate, quick, or prompt shipment or 
within 15 days of time of shipment, if sold for later than prompt ship¬ 
ment, or to perform any of the terms of this agreement, then the seller 
may at its option and upon due notice to the buyer cancel this contract, 
and the buyer shall pay to the seller an entry charge of 2% per cent on 
corn products plus the actual market difference. The seller may pursue 
such other remedies as the law may provide. On the refusal or neglect by 
the buyer to accept any shipment made in compliance with the contract as 
specified hereunder or to perform any of the terms of this agreement, the 
seller may treat such refusal or neglect as a breach of the entire contract 
for which the seller is entitled immediately to avail himself of any rights 
in this contract specified; but, except for reason or reasons specified herein, 

64 























if the shipment as specified is not executed within 60 days from date of 
contract, it shall be canceled and payment of charges above specified shall 
be made by the buyer to the seller. 

(7) Seller’s nonfulfillment of contract .—If the seller shall fail (except 
for reasons herein specified) to make any shipment as specified in accord¬ 
ance with the terms of the contract within the time indicated by this con¬ 
tract, then the buyer may at his option cancel the shipment and in the 
event of such default the seller shall upon demand pay to the buyer entry 
charge of 2% per cent on corn products plus the actual market difference 
and the buyer may pursue such other remedies as the law provides. 

(8) Exceptions to seller’s responsibility .—For delay in making shipment 
as specified, occurring through the fulfillment of Government contracts, or 
through fire, strikes, or labor difficulties, acts of carriers, car supply, or 
similar causes beyond the control of the seller, the seller is not responsible. 

Rule 2. Packages sold must be of prescribed size. —The 
licensee shall not sell corn meal, corn grits, or hominy after April 
1, 1918, for domestic use in the United States, except in packages 
containing iy 2 pounds, 3 pounds, 5 pounds, 10 pounds, 25 
pounds, 50 pounds, or 100 pounds net weight, without special 
permission in writing from the United States Pood Admin¬ 
istration. 

Note. —This rule corresponds to special rule 21, Series B, Governing 
Dealers in Corn Meal, Corn Grits, and Hominy. It applies only to com¬ 
mercial packages put up by manufacturers or wholesalers, and not to sales 
by retailers. 

Rule 3. Specifications for hominy, grits, corn meal, and 
corn flour. —On and after August 1, 1918, the licensee shall not 
knowingly quote, sell, or label products of corn under the follow¬ 
ing designations unless the products conform to the specifications 
indicated thereunder. In cases where the licensee, after an 
inspection of the goods, has no reason to suspect a failure to 
conform to specifications, he shall not be held to violate this rule 
if he quotes or sells products under the designation used by the 
miller in selling to him. 

Pearl , or table hominy: Shall be degerminated hulled corn, 
screened or dusted over a No. 10 wire cloth or 5/64-inch per¬ 
forated metal, and shall not contain more than 14 per cent 
moisture and 1 per cent fat, by ether extraction. 

Coarse table grits: Shall be made from hominy or clean, sound 
corn, ground and screened through No. 12 wire cloth and dusted 
over No. 16 wire cloth, and shall contain not more than 14 per 
cent moisture and 1 y 2 per cent fat, by ether extraction. 

Medium table grits: Shall be made from hominy or clean, 
sound corn, ground and screened through No. 14 wire cloth and 
dusted over No. 20 wire cloth, and shall contain not more than 
14 per cent moisture and 1% P er cent fat, by ether extraction. 

Fine table grits: Shall be made from hominy or clean, sound 
corn, ground and screened through No. 16 wire cloth and dusted 

65 


over No. 28 wire cloth, and shall contain not more than 14 per 
cent moisture and 1 y 2 per cent fat, by ether extraction. 

Cream meal: Shall be made from hominy or grits, screened 
through No. 22 wire cloth and dusted over No. 72 grits gauze, and 
shall contain not more than 14 per cent moisture and 1% per 
cent fat, by ether extraction, or 12y 2 per cent moisture and 214 
per cent fat. 

Corn flour: This shall be made from hominy, grits, or cream 
meal, and shall be of a texture fine enough so that not less than 
75 per cent will sift through No. 9XX bolting silk and balance 
shall sift through No. 72 grits gauze; shall be of an even color, 
and shall contain not more than lSy 2 per cent moisture and l x / 2 
per cent fat, by ether extraction, or 12 y 2 per cent moisture and 
2 per cent fat. 

Standard meal: Shall be made from clean, sound corn, with 
approximately 10 per cent of feed removed and approximately 
45 per cent of cream meal or grits extracted, and if sold for 
export shall contain not more than 9 per cent moisture. 

Pearl meal: Shall be made from clean, sound corn, with 
approximately 15 per cent of the bran and germ removed, and 
shall contain not more than 11 per cent moisture and 3 per cent 
fat. by ether extraction. 

Bolted meal: Shall be made from clean, sound corn with 
approximately 5 per cent of bran and germ removed, and if sold 
for export shall contain not more than 9 per cent moisture. 

“Old-fashioned,” or “water-ground meal”: Shall be clean, 
sound corn, ground to a “soft” meal, and if sold for export shall 
contain not more than 9 per cent moisture. 

The texture of products shall be determined by sifting with 
hand sieves clothed with the cloth specified, which shall be the 
standard bolting cloths now in use, whether of woven wire, grits 
gauze, or bolting silk. 

The analyses of products for moisture, fat, carbohydrates, fiber, 
ash, or other quality or content shall be made by the official 
methods of the American Association of Agricultural Chemists. 

Notes. —These specifications became effective for corn millers on July 
1, 1918. J 

The moisture content for hominy, grits, cream meal, and corn flour has 
been placed at the outside limit, and is not intended to limit contracts 
expressly providing for a lower moisture content. Exporters customarily 
require one-half per cent lower than the above limitations, and many 
domestic buyers also properly demand the lower maximum. The Food 
Administration has fixed the maximum at the higher level with a view to 
protecting the smaller millers with less complete equipment engaged in 
local trade in which durability is not so essential. Jobbers should note the 
advisability of requiring the lesser maximum in protecting their customers 
and their own trade. 


66 


Rule 4. Corn products must arrive in good condition. —The 
licensee shall ship all corn products in such condition that except 
for circumstances beyond the control of the shipper they shall 
arrive at destination point in the United States cool and sweet 
and in merchantable condition, unless there is an express agree¬ 
ment in writing to the contrary. 

E. Dried Beans and Dried Peas. 

Rule 1. Future dealing in new crop beans prohibited.— 
The licensee shall not buy or sell new crop dried beans grown in 
the United States of America, except for seed, before September 
1 of the year covering such new crop. 

Note. —This rule does not prohibit a licensee from guaranteeing a cer¬ 
tain price for a crop to be planted; however, sales against such an arrange¬ 
ment can not be made before September 1. 

Rule 2. Future dealing in new crop peas prohibited. —The 
licensee shall not buy or sell new crop dried peas grown in the 
United States of America, except for seed, before July 1 of the 
year covering such new crop. 

Note. —While this rule permits the guaranteeing of a price for a crop, 
no sales can be made by the licensee before July 1. 

Rule 3. Contracts for delivery of imported beans or peas 
beyond 60 days after arrival prohibited. —The licensee shall 
not make any contract for the sale of imported dried beans or 
dried peas for shipment or delivery more than 60 days after 
arrival in the United States, except for seed and excepting con¬ 
tracts with the Federal, State, county, or municipal governments, 
or for the government of any nation at war with Germany. 

Note. —Sales of domestic beans or peas are subject to Special Rule A-4. 

Rule 4. Permission required to can in tin-plate containers. 
—The licensee shall not sell any dried beans or dried peas 
knowing or having reason to believe that they are to be canned 
in tin-plate containers, unless he obtains a special permit from 
the United States Food Administrator. 

Rule 5. Quotations by pound. —The licensee shall quote, buy, 
and sell all dried beans and dried peas by the pound. 

Note. —This rule applies to dried beans and dried peas which are held 
for seeding purposes, and which are sold in commercial lots, but does not 
apply to sales of seed by wholesalers or retailers in the customary small 
seed packages or bags. 

Rule 6 . Prompt unloading required. —The licensee shall not, 
without reasonable justification, refuse to accept and unload 
promptly any dried beans or dried peas purchased by him. 

Rule 7. Grade must equal contract requirements. —The 
licensee shall not knowingly ship dried beans or dried peas which 

67 


are not equal to the grade, quality, or condition called for in 
the contract of sale. 

Note. —The above rules correspond to the special rules, Series B, gov¬ 
erning dealers in dried peas and dried beans. 

“Dried beans'' includes li dried lima beans." 

Profit on Imported Beans or Peas. 

A merchant importing dried beans or dried peas may sell such 
commodities at a gross margin above c. i. f. cost not exceeding 10 
per cent, provided such merchant actually furnishes the credit for 
the particular importation in question; a merchant is not consid¬ 
ered an importer of these commodities unless he furnishes credit 
or does his own buying in foreign countries. 

F. Dried Fruits. 

Rule 1. New-crop fruits that are not available for spot 

DELIVERY NOT TO BE BOUGHT OR SOLD BEFORE JULY 15.-The 

licensee, prior to July 15 of the year in which new crop fruits 
are to be grown and packed, shall not buy, contract to buy, offer 
for sale, or have outstanding any contract of sale or any com¬ 
mitment for sale of new-crop fruits not available for spot delivery. 
A commitment shall include all tentative or conditional orders 
whether definite prices are named or not. 

Note. —This rule and the following rule correspond to Rules 4 and 5, 
Series B, Supplement 28, which became effective May 7, 1918, and were 
amended to their present form May 24, 1918. 

Rule 2. Facing of packages prohibited. —The licensee shall 
not face or cause to be faced any licensed dried fruits in any 
package. Such facing shall be regarded as a wasteful practice. 

G. Canned Peas, Canned Corn, Canned Tomatoes, Canned Salmon, 
and Canned Sardines. 

Rule 1. Canned goods not to be quoted before February 
1 .—The licensee shall not quote for future delivery any canned 
peas, canned corn, canned tomatoes, canned salmon, or canned 
sardines before February 1 of the year when such products are 
to be canned. 

(This rule corresponds to Special Rule 3, Series B, Supplement, page 6, 
Governing Wholesalers and Retailers.) 

H. Green Coffee. 

Note. —Under the President's proclamation of January 30, 1918, which 
requires all persons, firms, corporations, and associations engaged in the 
business of importing or distributing green coffee to obtain a license, the 
following classes must obtain licenses and observe the rules and regulation* 
governing licensees: 


68 


Persons, etc., importing green coffee, whether or not they roast it before 
disposing of it. 

Wholesalers, jobbers, roasters, and all others who buy or otherwise deal 
in green coffee, whether or not they roast it before disposing of it. 

Retailers who buy or otherwise deal in green coffee, whether or not they 
roast it before disposing of it, whose total gross sales of all food or feed 
commodities exceed $100,000 a year. 

Brokers. 

In other words, all persons, firms, corporations, and associations who 
import, and all others (except retailers whose gross sale of food or feed 
commodities do not exceed $100,000 a year), who buy or otherwise deal in 
or handle green coffee, are required to obtain a license. 

Rule 1. Licensees entitled to reasonable profit. —The 
licensee in any sale of green coffee shall take no more than a 
reasonable profit for such sale over the average cost of his stock 
on hand or under contract, not at that time contracted to be sold, 
and in arriving at the cost he shall take into consideration the 
gain or loss resulting from any actual hedging transaction on a 
coffee exchange. For the purpose of this rule an actual hedging 
transaction on a coffee exchange shall only include transactions 
in which the sale or purchase made is finally closed. In calcu¬ 
lating the profit permitted by this rule the licensee shall not 
include the gain or loss from more than one hedging transaction 
on the same lot or stock or coffee, but the position of this transac¬ 
tion may be switched from one month to another, provided that 
all profits or losses from any hedging transaction and all facts 
regarding the switching of any hedge from one month to another 
are included in the licensee’s reports. The licensee shall keep 
any speculative account on the coffee exchange entirely separate 
from such hedging transactions and the gain or loss resulting 
therefrom shall not be considered in determining the cost of his 
hedged stock of coffee. 

Rule 2. Importer limited to profit of 2% per cent. —For 
the purpose of rule 1 a reasonable profit for an importer shall not 
be more than 2 y 2 per cent gross margin over cost, plus any 
brokerage or commission, and the usual exship or instore, and 
shipping charges, actually incurred by the licensee. An importer 
shall be any person who buys for shipment from the producing 
country whether or not on c. and f., c. i. f., exship or instore 
contract, and who resells his invoice as shipped, in any position, 
as a whole or in divided quantities not less than 500 bags without 
selection of specified chops. A jobber dealing in this manner 
shall be considered an importer. 

Rule 3. Jobber limited to profit of 5 per cent. —For the 
purpose of rule 1 a reasonable profit for a jobber shall be 5 
per cent gross margin over cost, plus brokerage or commission, 
and the usual exship or instore and shipping charges actually 
incurred by the licensee. A jobber shall be a person who cus- 

69 


tomarily sells coffee in one or more chops to wholesale grocers 
or roasters. 

Note. —The prescribed profit must not be exceeded in any transaction 
involving more than 25 bags of green coffee, whether or not the jobber cus¬ 
tomarily sells in one or more chops. 

Rule 4. Resales within same trade forbidden. —The licensee 
in selling green coffee shall keep it moving to the consumer in 
as direct line as practicable and without unreasonable delay. 
Resales within the same trade without reasonable justification, 
especially if tending to result in a higher market price to the 
retailer or consumer, will be dealt with as an unfair practice. 
Where reasonable justification exists for a resale any importer 
purchasing coffee from another importer shall resell the same 
at a gross margin of not more than 1*4 per cent over cost, plus 
any brokerage or commission actually incurred by the licensee, 
and a jobber purchasing coffee from another jobber shall resell 
such coffee at a gross margin not exceeding 2 y 2 per cent over 
cost, plus any brokerage or commission actually incurred. 

Note. —More than one resale will be permitted only under very excep¬ 
tional conditions. The Food Administration realizes that at certain periods 
there may be sufficient justification to warrant resales, and full considera¬ 
tion will be given to exceptional conditions constituting such justification 
when they occur. 

Rule 5. Must not have more than 90 days’ supply. —The 
licensee shall not, without the written consent of the United 
States Food Administrator, or his duly authorized representative, 
keep on hand or have in possession or under control, by contract 
or other agreement, at any time, green coffee in a quantity in 
excess of the reasonable requirements of his business for use or 
sale by him during a period of 90 days: Provided , however , That 
this rule shall not prevent any licensee from having a carload of 
green coffee in transit in addition to a supply thereof sufficient 
to last until arrival of said carload. 

Note. —Green coffee to be imported into this country but which has not 
yet arrived shall not be included in calculating the 90 days’ supply under 
this rule. 

It may be found necessary to amend the above rule, requiring on proper 
notice a further reduction of stocks. 

The reasonable requirements of the licensee shall be based prima facie 
upon the amount of green coffee handled by the licensee in the years 1916 
and 1917. 

Rule 6 . Must not sell or deliver more than 90 days’ 
supply.— The licensee shall not, without the written consent of 
the United States Food Administrator, or his duly authorized 
representative, sell or deliver to any person any green coffee if 
the licensee knows, or has reason to believe, that such sale or 

70 


delivery will give to such person a supply of green coffee in 
excess of his reasonable requirements for use or sale by him 
during the period of 90 days next succeeding such sale or 
delivery: Provided , That this rule shall not prevent the sale or 
delivery of green coffee to the Federal, State, county, or munic¬ 
ipal governments, or to the government of any nation at war with 
Germany, or the sale or delivery of a carload of green coffee to 
any licensee having less than a carload lot on hand. 

Rule 7. Must not charge more than the customary brok¬ 
erage.— The licensee shall not charge, directly or indirectly, a 
commission or brokerage on the sale of green coffee in excess of 
that which ordinarily and customarily prevails, under normal 
conditions, in the locality in which the broker’s business is 
conducted. 

Rule 8. Only one brokerage permitted. —Brokers shall not 
receive more than one brokerage on any sale, nor shall they 
receive an overage except where by force of circumstances they 
may have become principals through a misunderstanding or 
delay. When a broker closes out or sells coffee upon which he 
receives an overage he must send to the buyer, and enter in his 
reports to the Food Administration, full particulars regarding 
such transaction. In cases where first-hand dealers (i. e.,"import¬ 
ers, jobbers, or licensees holding green coffee on commission) 
employ one broker as their exclusive broker, and such goods are 
placed to the interior trade through a local broker acting there 
as the representative of the sole broker of the principal, the 
licensee under rules 2, 3, and 4 may include under the item of 
brokerage such extra brokerage or commission as has been here¬ 
tofore customary for the local broker. All invoices rendered by 
licensees to buyers of green coffee shall state the entire amount 
of brokerage paid, if any, on the transaction, and included in the 
price paid by the buyer. 

Note. —In the green coffee trade it has been customary for brokers, rep¬ 
resenting exclusively first-hand dealers, to handle these accounts through 
outside brokers for the interior trade, and these first-hand dealers cover 
the cost to them of these outside brokers by an additional price, secured 
from the purchaser. As this custom has been long established, the Food 
Administration, pending further notice, will permit it to continue, but 
requires that the full amount of all commissions paid on a transaction shall 
be shown on the coffee invoices rendered by the seller to the buyer in 
every case. 

Dealers Also Governed by General Rules. 

Dealers in green coffee are also governed by the General Regu¬ 
lations Governing All Licensees. Particular attention is directed 
to General Rule 22, which prohibits a licensee from buying green 


71 


coffee from or selling green coffee to any person subject to license 
who has not obtained a license. 

Roasted Coffee. 

Although roasted coffee itself has not been licensed it must be 
carefully noted that all persons selling roasted coffee are subject 
to the Food-Control Act of August 10, 1917, and that this law 
expressly forbids unreasonable or excessive charges. If it is 
found that the trade is violating this law as to reasonable profits 
upon roasted coffee, prompt action will be taken and the Food 
Administration will also find it necessary to place roasted coffee 
under license. 

Special License Regulations Governing Brokers and Auctioneers of 
Licensed Non-perishable Food Commodities. 

Note: —The following regulations apply to brokers and auc¬ 
tioneers. It is important that dealers should sharply distinguish 
between acting as a broker and buying outright. A broker is an 
agent employed to make bargains and contracts between other 
persons in matters of trade for a compensation commonly called 
a brokerage or commission. An auctioneer is a person who sells 
goods at auction. A commission merchant is synonymous with 
the term factor and is defined as one who receives goods to be 
sold for a compensation to be paid by the owner, commonly 
called a commission. 

The distinction between a commission merchant and a broker 
is that the commission merchant has possession of the goods which 
he is selling for his principal. In the case of a broker, strictly 
speaking, he is not entrusted with the custody or possession when 
employed to either buy or sell the goods. 

A sale is where the owner of the goods transfers the property 
in the goods for a money consideration called the price. 

If the commodity is purchased outright and the transaction is 
a sale, no license is required as a broker. However, if you do 
not buy outright but sell the goods for some other person and 
receive a commission, you are required to take out a license as a 
broker and comply with the following rules and regulations. 

Attention is also called to the fact that most of the States 
have statutes requiring commission men, brokers, auctioneers, 
etc., to take out a license under a State law and to give bonds. 

Therefore, if your business is that of a broker or commission 
merchant, you would not only be bound to take out a license 
under the United States Food Administration Laws, but also 
(in most States) a license under the State law and comply with 
the requirements of both laws. 

A broker or auctioneer in a transaction concerning any licensed 

72 


food commodity is responsible for any violation by the principal 
of the regulations governing such transaction. Brokers and 
auctioneers should, therefore, familiarize themselves with the 
general regulations and any special regulations governing prin¬ 
cipals for whom they act. 

Brokers and auctioneers in all licensed non-perishable food 
commodities must also conform to the following brokers ’ rules: 

Rule 1. Commission or brokerage charges limited.—A 
licensee shall not charge directly or indirectly a commission or 
brokerage on the sale of food commodities in excess of that which 
ordinarily and customarily prevails under normal conditions in 
the locality in which the broker’s, commission merchant’s, or 
auctioneer’s business is conducted and in the particular branch 
of trade in question. 

Rule 2. Prompt remittance required.— The licensee shall 
remit promptly following the sale of food commodities received 
on consignment for sale or distribution, and shall render to the 
consignor an account showing the true sales and with charges 
only for services actually performed and expenses actually 
incurred by the licensee. 

Note.—A commission merchant can not divide his commission with the 
buyer unless he shows on the account of sales rendered to the, consignor 
that he has done so. 

Rule 3. Charging of both brokerage and overage prohib¬ 
ited.— The licensee shall not charge or receive for himself, on 
the sale of any food commodities, both a commission or brokerage 
and an overage or profit. 

Rule 4. Sales to self forbidden without written consent 
of principal.— The licensee shall not directly or indirectly sell 
consigned food commodities, or food commodities with the sale 
of which on commission he is intrusted, to himself or to anyone 
connected with his business without the written permission of 
his principal. 

Rule 5. Only one brokerage on sugar permitted. —No 
licensee shall charge a commission or brokerage on any sugar 
on which one brokerage or commission has already been charged. 

Rule 6. Commissions on sugar cannot be split with buyer 
or seller. —The licensee may split with other brokers commis¬ 
sions or brokerage received on the sale of sugar, but shall not 
split such commissions or brokerage with the buyer or seller of 
the sugar. 

Note.—T he payment by a sugar broker of charges incurred by him for 
telephone and telegraph messages received by him from a buyer does not 

73 


constitute the splitting of his commissions with the buyer. Money so paid 
out is an expense of the brokerage business. 

Margins for Brokers Who Buy and Sell for Their Own Account. 

Subject to the provisions of general rules 6, 7, and 8 and the 
above rules governing commission merchants and brokers, brokers 
may in proper and necessary transactions, buy and sell for their 
own account. Transactions of this kind should be confined to the 
smallest possible volume and in every case must be justified by 
the necessity of completing ears or dividing carloads among 
smaller buyers; such merchants engaged in this business should 
be guided by the following suggested margins which are to be 
regarded as maximum gross profits, but are not permitted unless 
corresponding service is rendered: 

Per cent 


All flour (except wheat and rye flour), hominy, grits, 

corn meal, oatmeal, rolled oats, beans, rice. 4 

Licensed cereals in packages, licensed canned goods, 

licensed dried fruits. 5 


These margins shall be inclusive of any brokerage received. 

In every case where a broker sells for his own account any 
non-perishable goods that he has purchased from a particular 
principal, and has received, or is entitled to receive, a brokerage 
on such goods, he must deduct such brokerage before fixing his 
margin of profit as a jobber. 

Illustrative Cases—John Jones is a flour mixer, operating 
under a jobber’s license; inquires as to whether it is permissible 
to sell to retailers through brokers. 

Answer:—Cases of trading in which profits accrue to dealers 
who render no service are in violation of the rules prohibiting 
resales within the same trade without reasonable justification. 
See General Rule 6. In cases where brokers actually render 
service and receive no more than the customary established brok¬ 
erage for that service, brokerage fees may be allowed. However, 
if the broker acts in collusion with the buyer or seller, merely to 
obtain an added profit for one or more of them, the brokerage 
fee reflected in the added profit would be held unlawful. 

The XY Company is a jobber which purchases flour from a 
mill and sells it to a wholesaler. What fee, if any, may be 
charged in such circumstances ? 

Answer:—The XY Company purchasing flour from a mill 
should not charge more than half of the margin permitted on 
sales by wholesalers to retailers, that is, not more than half of 
50 to 75 cents per barrel. 

The Brown Company is a jobber and sells goods to the Franklin 
Commission Company, a broker which holds a dealer’s license. 
Is this illegal ? 


74 




Answer:—One resale within the same trade may be permitted 
provided the resale represents service. Brokers handling goods 
for their own account must deduct any brokerage in determining 
the margin allowed themselves as jobbers. No margin at all is 
allowed unless resale is justifiable under the rules announced by 
the Food Administration. 

The Thomas Murphy Company, a wholesaler, which fixes its 
profits on a cost plus basis, averages its cost of food commodities. 
Is that illegal? 

Answer:—The rules of the Food Administration originally 
prohibited averaging. Rule 5, supra, covering wholesalers per¬ 
mits averaging of the purchase prices of all lots of the same grade 
and size of the same commodity in the possession of the whole¬ 
saler or invoiced to them, not contracted to be sold. 

If a jobber buys product through a broker and the broker, in 
order to give a special inducement to put over the deal is willing 
to split his brokerage with the buyer, can the buyer take the brok¬ 
erage he receives as extra profit and collect the percentage as 
profit which he would have collected if he had paid the full list 
price ? 

Answer:—Clearly, a jobber is not entitled to this extra brok¬ 
erage as an extra profit. He must figure this in his cost and 
permit the buyer to profit to the extent of such saving in 
brokerage. * 

Special Regulations Governing Licensees Engaged in the Business of 
Canning Peas, Corn, Tomatoes, Dried Beans, Salmon, Sardines, or Tuna, 
or Manufacturing Tomato Soup, Tomato Catsup, or Other Tomato 
Products. 

(The following special rules correspond to series B, and in so far as they 
apply to the canning of peas, corn, tomatoes, dried beans, salmon, or 
sardines became effective Nov. 1, 1917, unless otherwise noted. They became 
effective as to tomato catsup and other tomato products other than canned 
tomatoes on February 28, 1918. They became effective as to canned tuna 
on June 15, 1918.) 

Note. —Licensees governed by the following rules are also subject to 
general license regulations, supra. The following regulations were effective 
June 15, 1918. The following rules, 1 to 5, apply to all of the above 
commodities. Rules 6 to 11 apply to canners of fresh fish and vegetables 
only. Rules 12 to 15 apply to canners of dried beans only. 

Rule 1. Carload shipments—minimum weights. —All car¬ 
load shipments of canned peas, canned corn, canned dried beans, 
canned tomatoes, tomato soup, tomato catsup, or other tomato 
products, canned salmon, or canned tuna shall be made in car 
lots of not less than 60,000 pounds, and all carload shipments 
of canned sardines shall be made in car lots of not less than 
45,000 pounds, unless a different minimum is authorized by 
special written permission of the United States Food Adminis- 


75 


trator; provided, that when cars of lower carrying capacity are 
used the maximum load which the car will carry may be used 
without such permission. 

Note. —This rule corresponds to General Rule 9, Series B. The rule 
applies to intrastate as well as interstate shipments. The rule prescribes a 
trade unit and is not a transportation regulation. 

Rule 2. Manufactured products must be sold at not more 
than reasonable advance over average cost. —The licensee 
shall sell goods manufactured and on hand for not more than a 
reasonable advance over the average cost of the season’s pack 
without regard to the market or replacement value at the time 
of such sale. 

Note. —This rule corresponds to Special Rule 4, Series B, Governing 
Canners. It was amended to its present form January 28, 1918. 

Maximum Prices Sardines .—The Food Administration has 
announced that after an examination of the costs of operation 
in the sardine canning industry, that higher prices than those 
recommended by representatives of this industry in Maine for 
the 1918 pack will be considered unreasonable under the Food 
Control Law. A maximum price of $6.50 per case was set on 
one-quarter keyless oil sardines, and $6.25 on one-quarter and 
three-quarter standard mustard sardines. The customary differ¬ 
entials for keys and cartons will prevail and on fancy goods the 
prices will not provide more than a reasonable profit over cost. 

A system of inspection for sardine canners of Maine and 
Massachusetts similar to that already in successful operation in 
California has been established by the Food Administration. 

The Food Administration has announced that canners would 
be required to make frequent reports of sales. 

Rule 3. Licensee shall produce fair proportions of 
announced grades and sizes. —The licensee shall produce a fair 
proportion of his canned food products in such grade and sizes 
as may be hereafter required by the United States Food Admin¬ 
istrator by public announcement. 

Note. —This rule corresponds to Special Rule 6, Series B, Governing 
Canners. 

Rule 4. Factory and equipment must be kept clean. —The 
licensee shall at all times keep his factory, machinery, utensils, 
and raw material, including products to be canned, in a clean 
and sanitary condition. He shall so regulate his purchases and 
handling of raw materials as to insure their delivery to the 
factory in a sound condition and to avoid unnecessary waste. 

Note. —This rule corresponds to Special Rule 10, Series B, Governing 
Canners. It became effective January 28, 1918. 


76 


Rule 5. Full packing of cans required. —The licensee shall 
pack all cans as full of food as is practicable for packing and 
processing without injuring the quality or appearance of the 
contents. No liquor shall be added, except in sufficient quantity 
to fill the interstices and cover the product. No water shall be 
added in canning tomatoes. 

Note. —This rule corresponds to Special Rule 11, Series B, Governing 
Canners. It became effective January 28, 1918. 

(Rules 6 to 11 apply to the canning of fresh vegetables and 
fish only.) 

Rule 6. Quotations or sales before February 1 prohibited. 
The licensee shall not quote for future packing or delivery or 
sell any canned peas, canned corn, canned tomatoes, tomato soup, 
tomato catsup, or other tomato products, canned salmon, canned 
sardines, or canned tuna before February 1 of the year in which 
such products are to be canned: Provided, That this rule shall 
not apply to sales to the Government of the United States. 

Note. —This rule corresponds to Special Rule 1, Series B, Governing 
Canners. It was amended to its present form January 28, 1918. “Shall 
not quote for future packing or delivery or sell” includes acceptance of 
orders subject to approval of price when named. This rule prohibits the 
acceptance of conditional orders or commitments of any kind. 

Rule 7. Sales of canned peas, corn, or tomatoesjmust not 
EXCEED 75 PER CENT OF YEARLY AVERAGE DELIVERY, 1913-1917.— 
The licensee shall not sell for future delivery to parties other 
than the Government of the United States any canned peas, 
canned corn, canned tomatoes, tomato soup, tomato catsup, or 
other tomato products, in excess of 75 per cent of the yearly 
average delivery of such articles made by him during the five 
years next preceding 1918, and in no event shall all sales, 
including sales to the Government of the United States, exceed 
100 per cent of such average delivery, unless otherwise permitted 
by the special written consent of the United States Food Admin¬ 
istrator; such licensee must in all instances have under written 
contract at the time of making such sales, except sales to the 
Government of the United States, an acreage which under nor¬ 
mal conditions would yield a crop sufficient for filling such 
future sales. 

Note. —This rule corresponds to Special Rule 2, Series B, Governing 
Canners. It was amended to its present form January 28, 1918. 

Note. - —Canners desiring permission to sell canned tomatoes for future 
delivery to an amount disproportionate under existing restrictions to the 
acreage under contract may make application in writing to the Food Ad¬ 
ministration for special permission. Applications should state the reason 
therefor; the acreage, if any, under contract, the number of cases per year 
sold for future delivery during the past five years; the number of cases 
actually delivered on future contracts in the respective years; and the sales, 

77 


if any, that may have been already made for delivery from the pack of 1918. 

These special permits will be granted only at the discretion of the Food 
Administration, and in no case will the permitted sales, not based on 
acreage under contract, exceed two-thirds of the amount which might be 
sold if the required acreage were contracted. 

Rule 8. Sales of canned salmon or sardines must not 
exceed 75 per cent of estimated pack. —The licensee shall not 
sell for future delivery canned salmon, canned sardines, or 
canned tuna, in excess of 75 per cent of his estimated pack, 
conservatively figured with regard to his capacity and the supply 
of fish which can reasonably be expected by him. 

Note. —This rule corresponds to Special Rule 3, Series B. Governing 
Canners. 

Rule 9. Licensee must not buy commodities already sold. 
No licensee shall buy or contract to buy any of the vegetables 
or fish required for the above-mentioned products if he has 
reason to believe that the seller has already contracted to sell the 
said materials to other persons. In buying vegetables or fish 
for such products he shall require the seller to state in writing, 
in the contract or otherwise, that he has not contracted to sell 
said vegetables or fish to others. 

Note. —This rule corresponds to Special Rule 5, Series B, Governing 
Canners. 

Rule 10. Licensee must complete contracts for future 
delivery.— If a licensee has contracted to sell for future delivery 
any proportion of his estimated pack he shall not sell any such 
products for immediate delivery unless he shall have already 
packed, exclusive of his product so sold for immediate delivery, 
a sufficient quantity to fill all such contracts for future delivery. 

Note. —This rule corresponds to Special Rule 8, Series B, Governing 
Canners. It became effective January 28, 1918. 

Rule 11. One form of contract must be used. — No licensee 
shall hereafter use more than one form of contract covering the 
sale of licensed commodities for future delivery of the pack of 
any one season without a special permit from the Food Admin¬ 
istration. 

Note. —This rule corresponds to Rule 9, Series B, Governing Canners, 
and became effective January 28, 1918. 

(Rules 12 to 15 apply to the canning of dried hems only.) 

Rule 12. Must not hold more than 60 days’ supply of 
dried beans. —The licensee shall not, without the written consent 
of the United States Food Administrator, or his duly authorized 
representative, keep on hand or have in possession or under con¬ 
trol, by contract or other arrangement, at any time, any dried 

78 


beans and canned dried beans not sold or contracted to be sold 
in a quantity in excess of the reasonable requirements of his 
business for sale by him during the next 60 days. 

This rule shall not affect the validity of contracts enforceable 
at law made in good faith prior to October 15, 1917. 

Note. —Rules 12, 13 and 14 correspond to general Rules 13, 14 and 15 in 
Series B. 

Rule 13. Must not sell or deliver more than 60 days’ 
supply of dried beans. —The licensee shall not sell or deliver to 
any person any canned dried beans without the consent of the 
United States Food Administration, if the licensee knows, or 
has reason to believe, that such a sale or delivery will give to 
such person a supply of such commodities not sold or contracted 
to be sold in excess of his reasonable requirements for use or sale 
by him during the period of 60 days next succeeding such sale 
or delivery: Provided, That this rule shall not prevent the sale 
or delivery of any canned dried beans to any person for the 
Federal, State, county, or municipal governments or for the 
government of any nation at war with Germany, or the sale or 
delivery of a carload thereof to any licensee having less than a 
carload lot on hand. 

Note. —This rule was amended to its present form January 28, 1918. 

Rule 14. Must not sell dried beans for delivery more 
than 60 days after date of contract,— The licensee shall not 
make or have outstanding at any time any contract for the sale 
of canned dried beans for shipment or delivery more than 60 
days after the making of such contract: Provided, however , 
That this rule shall not apply to contracts with the Federal, 
State, county, or municipal government or with the government 
of any nation at war with Germany. 

Rule 15. Permit required to can dried beans or dried peas 
in tin-plate containers. —The licensee shall not can in contain¬ 
ers made of tin-plate any dried beans or dried peas without a 
special permit from the United States Food Administrator. 

Note. —This rule corresponds to Special Rule 7, Governing Canners. 

Special Regulations Governing Licensees Engaged in the Business of 
Manufacturing Condensed, Evaporated, or Powdered Milk. 

Rule 1. Carload shipments—minimum weights. —All car¬ 
load shipments of the following commodities shall be made in 
car lots of not less than the amount prescribed below unless a 
different minimum is authorized by special written permission 
of the United States Food Administrator: Provided, however, 
That when cars of lower carrying capacity are used the max- 


79 


imum load which the car will carry must be used without such 
permission: Pounds 

Evaporated Milk and Condensed Milk....45,000 
Powdered Milk .40,000 

Provided, That when any of the foregoing is shipped in bar¬ 
rels, the car may be loaded to the car-space capacity, barrels on 
end. 

Note. —This rule corresponds to General Rule 9, Series B. 

Rule 2. Goods must be sold for not more than reason¬ 
able advance over average cost. —The licensee shall sell con¬ 
densed, evaporated, and powdered milk for not more than a 
reasonable advance over the average cost of the season’s pack 
without regard to the market or replacement value at the time 
of such sale. 

Rule 3. Must not sell or deliver more than 60 days’ 
supply to any person. —The licensee shall not sell or deliver to 
any person any condensed, evaporated, or powdered milk without 
the consent of the United States Food Administration if the 
licensee knows or has reason to believe that such a sale or delivery 
will give to such person a supply of any such commodities, not 
sold or contracted to be sold, in excess of his reasonable require¬ 
ments for use or sale by him during the period of 60 days next 
succeeding such sale or delivery: Provided, That this rule shall 
not prevent the sale or delivery of any food commodities to any 
person for the Federal, State, county, or municipal governments 
or for the government of any nation at war with Germany, or 
the sale or delivery of a carload of that commodity to any licensee 
having less than a carload lot on hand. 

Note. —Rules 3 and 4 correspond to General Rules 14 and 15, Series B. 

Rule 4. Contracts for delivery more than 60 days ahead 
prohibited. —The licensee shall not make or have outstanding at 
any time any contract for the sale of condensed, evaporated, or 
powdered milk for shipment or delivery more than 60 days after 
the making of such contract: Provided, however, That this rule 
shall not apply to contracts with the Federal, State, county, or 
municipal governments or with the government of any nation at 
war with Germany: Provided, further, That an importer may 
sell goods to be imported for delivery on arrival. 

This rule shall not affect the validity of contracts enforceable 
at law made in good faith prior to October 15, 1917. 

Special Regulations Governing Licensees Engaged in the Business of 
Preparing or Packing Dried Peaches, Dried Apples, Dried Prunes or 
Dried Raisins. 

Rule 1. Minimum carload shipments, 60,000 pounds. —All 

80 



carload shipments of dried peaches, dried apples, dried prunes, 
or dried raisins shall be made in car lots of not less than 60,000 
pounds, unless a different minimum is authorized by special 
written permission of the United States Food Administration: 
Provided, however, That when cars of lower carrying capacity 
are used, the maximum load which the car will carry may be 
used without such permission. 

Note. —This rule corresponds to General Rule 9, Series B. 

Rule 2. New-crop fruits not to be bought or sold before 
July 15.—The licensee, prior to July 15 of the year in which 
new-crop fruits are to be grown and packed, shall not buy, 
contract to buy, offer for sale, or have outstanding any contract 
of sale or any commitment for sale of new-crop fruits not avail¬ 
able for spot delivery. A commitment shall include all tentative 
or conditional orders, whether definite prices are named or not. 

Note. —Rule A-2, supra, Governing Persons Engaged in the Business of 
Preparing or Packing Dried Fruits is not to be construed as prohibiting the 
making of a contract whereby a packer or association agrees with a grower 
to market the grower’s crop at the price prevailing when the crop is 
marketed; nor is the rule to be construed as affecting any such contracts 
that are already outstanding. 

Rule 3. Facing of dried fruits prohibited. — The licensee 
shall not face or cause to be faced any licensed dried fruits in 
any package. Such facing will be regarded as a wasteful prac¬ 
tice. 

Rule 4. Dried fruits must be sold at not more than a 
reasonable advance over cost.— The licensee shall sell his prod¬ 
ucts for not more than a reasonable advance over the cost of 
said products and without regard to market or replacement 
value at the time of said sale. 

Rule 5. Price lists and circulars to be mailed food admin¬ 
istration. —Licensees quoting dried fruits for shipment in car¬ 
load lots shall mail promptly to the Dried Fruits Division of the 
United States Food Administration, Washington, D. C., all price 
lists and circulars relating to prices on dried peaches, apples, 
prunes, or raisins. 

Note.—R ules 2, 3, 4, and 5 correspond to Special Rules 1, 2, 3, and 5, 
Series B, supplement 16, effective March 30, 1918. Rules 4 and 5 were 
amended to their present form May 24, 1918. 

Special License Regulations Governing Distribution of Fresh Fruit 
and Vegetables. 

(The Licensees are also governed by General Rules. The following are 
all rules issued up to and including July 10, 1918.) 

A. Special Regulations Governing All Distributors of Fresh Fruits 
and Vegetables. 

Note.—Charges: Dealers in fresh fruits and vegetables are governed 


81 


by General Rule 5, which prohibits excessive profits and permits only a 
fair and reasonable profit above expenses for the year’s business, and 
no more. 

Because of varying and uncertain conditions which surround the assem¬ 
bling, distributing and marketing of fresh fruits and vegetables, such as 
climatic changes, delays in transportation, uncontrolled supply and the 
inborn perishability of the products, all of which subject these products 
to wide fluctuations in values, no specific regulations have been promulgated 
determining exactly what is a fair and reasonable profit on sales of fresh 
fruits and vegetables, nor the amount or percentage of profit that shall 
be made. The chief point is to keep perishable products moving freely 
into consumptive channels, consistent with equitable and even distribution 
over the normal season of any particular commodity, at the prevailing 
prices determined by an open, unrestricted market, without manipulation, 
monopoly, or by taking advantage of temporary emergencies, or artificial 
conditions. 

In the course of events, commodities which were stored for the purpose 
of providing for one’s seasonal requirements may increase abnormally in 
value, and if sold subject to the natural operation of the law of demand 
and limitation of supply would result in an undue and unwarranted year’s 
profit and a correspondent unjustifiable hardship on the consuming public. 
Should such a situation present itself or arise, a full statement of facts 
must be presented to the Food Administration without delay and every 
effort be made by holders of such commodities to co-operate with the Food 
Administration in evolving a system of distribution that may be determined 
as fair and equitable. 

Requirements : The buying of supplies of fruits and vegetables for one’s 
normal requirements, covering the usual season of distribution, is a legitimate 
transaction; withholding supplies beyond the natural time of disposition or 
beyond the period of safety to the physical value or wholesomeness of any 
commodity, or holding for unreasonable gains will be considered unlawful 
within the meaning of the Act. 


Rule 1. Minimum carload shipments. —All carload ship¬ 
ments of fresh fruits or vegetables shall be made in car lots of 
not less than the amount prescribed below unless a different min¬ 
imum is authorized by special written permission of the United 
States Food Administrator: Provided, however, That when cars 
of lower carrying capacity are used the maximum load which the 
car will carry consistent with the safety of the contents may be 
used without such permission. 


Oranges and lemons, straight or mixed car-1 7 boxes wide, 2 boxes high; 
loads, in ventilator or refrigerator cars, boxes on end full length 
from California and Arizona. J of car. 

Exception : Lemons shipped in collapsible tank cars with bunkers open 
may be loaded 6 boxes wide instead of 7 boxes wide. 

Oranges, lemons, limes, and grapefruit, 1 

straight or mixed carloads, in ventilator or 1 360 boxes, 

refrigerator cars, from Florida. 

Watermelons, average weight, 25 lbs. or less 5 tiers high. 

Watermelons, average weight more than 25 7 ^ ^ 

pounds. j ® 

{ To be loaded as heavily as 
will permit transportation 

proviueu ior auove. —1 ' L '" x J 


82 


without damage to the 
commodity shipped. 


Note.-— This rule was formerly included in General Eule 9 of Series B, 
as amended January 28, 1918, and April 4, 1918. 

Rule 2 . Hoarding prohibited.— The licensee shall not keep 
on hand or have in his possession or under control by contract 
or other arrangement a quantity of fresh fruits or vegetables in 
excess of the reasonable requirements of his business for use or 
sale by him for a reasonable time, or in sufficient quantities to 
fill his reasonable requirements throughout the period of scant 
or no production. 

Note. This rule takes the place of the rule issued as Series B, General 
Eule 13. 

Rule 3. Cancellation of contract prohibited after goods 
are in transit.— The licensee shall not cancel any contract for 
fresh fruits or vegetables after the goods are loaded at point of 
origin and under billing without the consent of the other party 
to the contract. Nothing in this rule shall be construed to limit 
or change the right of any party in any action for damages 
because of any cancellation, whether prior or subsequent to ship¬ 
ment. 

Note. —This rule was issued as Series B, Special Eule 7, effective January 
28, 1918. 

Rule 4. Shipper must not ship goods below contract 
requirements. —The licensee shall not knowingly ship fresh 
fruits or vegetables which are not equal to the grade, quality, 
and condition called for in the contract of sale. 

Notes. —This rule was issued as Series B, Special Eule 8, effective Jan¬ 
uary 28, 1918. 

The licensee, before shipping goods which do not conform to the contract 
of sale, must arrange in a manner satisfactory to the buyer for any such 
substitution. 

Rule 5. Unreasonable refusal to accept by consignee 
prohibited. Time for unloading. —The licensee shall not with¬ 
out reasonable justification refuse to accept and unload promptly 
any fresh fruits or vegetables shipped to him. Delay in transit 
shall not of itself constitute reasonable justification for refusal 
to accept unless specific delivery date has been contracted for. 

Notes. —This rule, issued as Series B, Special Eule 9, effective January 
28, 1918, is amended by the above rule. 

The Food Administration considers prompt unloading of the utmost 
importance. Three days after the period allowed for inspection by Eule 6 
will be considered the maximum unloading time, Sundays, holidays and 
extraordinary circumstances excepted. This maximum time shall not be 
construed to permit in any ease a longer period for unloading than is 
reasonably necessary. The time taken by a carrier to place a car from a 
railroad hold or receiving yard to a team track or private unloading track, 

83 


after the order to so place has been filed, will not be considered a part of 
the time allowed for unloading. 

The existence of minor or occasional defects in a shipment of fresh 
or vegetables will not be sufficient to justify a refusal to accept if tne 
shipment as a whole can fairly be said to conform to contract as to grade, 
quality, or condition as usually understood in the trade. 

Rule 6. Notification of condition of goods on arrival— 
Time for inspection. —The licensee to whom fresh fruits or vege¬ 
tables are shipped shall notify the consignor promptly after 
arrival (by wire if possible) of the true condition of any goods 
which are claimed to be defective or not in accordance with the 
contract of sale, and in such notification shall inform him of 
any refusal to accept. 

Note. —This rule was issued as Series B, Special Rule 10, effective Jan¬ 
uary 28, 1918. 

Twenty-four hours from the time when the shipment shall be placed where 
inspection by the consignee is practicable shall be considered a maximum 
reasonable time within which such notification shall be given, Sundays, 
holidays, and extraordinary circumstances excepted. 

Rule 7. Claims to be based on accurate data. —Claims for 
shrinkage or waste on any shipments of fresh fruits or vege¬ 
tables shall be based wherever possible upon actual weight, count, 
or measure in accordance with the nature of the commodity. 

Note. —This rule was issued at Series B, Special Rule 11, effective Jan¬ 
uary 28, 1918. 

Where the evidence clearly establishes a dishonest claim for damages 
drastic action will be taken. 

Rule 8. Unreasonable refusal to adjust claims. —The 
licensee shall not unreasonably refuse to adjust promptly claims 
for damages on shipments of fresh fruits or vegetables, where 
failure to make adjustment will result in a delay in unloading 
and a danger of waste. 

Note. —This rule was issued as Series B, Special Rule 12, effective Jan¬ 
uary 28, 1918. 

This rule applies to an unreasonable refusal by either the seller or buyer, 
and refusals to adjust proper claims because of a change in market condi¬ 
tions are clearly prohibited by this rule. 

Rule 9. Terms to be included in every contract unless 
expressly agreed otherwise.— The licensee shall include in 
every contract for the sale of fresh fruits and vegetables to be 
shipped by a common carrier the following terms, and these 
terms shall be understood as included in every such contract 
between licensees even though not expressly stated'. Provided, 
however , That the said terms may be varied by express agree¬ 
ment in writing. 


84 


TERMS OF CONTRACT 

A. The seller shall be responsible for and reimburse the 
buyer for any failure of the goods to conform to the grade, 
quality, or condition specified in the contract of sale, except 
that all sales made f. o. b. point of origin shall be construed to 
mean that the buyer assumes all risks of damage in transit not 
caused by the shipper whether there is a bill of lading to the 
order of the seller or not. 

B. The shipment shall be deemed to have reached destination 
when placed on any railroad team track or private unloading 
track or where awaiting consignee’s order for placing on such 
team or private unloading track. The burden of loading a ship¬ 
ment on such arrival shall be on the consignee, provided that 
the consignor has billed the shipment with proper instructions 
as to the railroad notifying the consignee. The failure of the 
railroad to notify the consignee will not be construed as releas¬ 
ing the consignee from his obligations to the consignor, provided 
proper advice as to the car number has been given to the con¬ 
signee by the consignor. But if the consignee uses every reason¬ 
able effort to locate a car and fails, he shall not be responsible 
for failing to learn of its arrival. 

Notes. —The rule issued as Series B, Special Rule 13, effective January 
28, 1918, is amended by the above rule. 

This rule applies to the sale of cars in transit, provided the seller advises 
the buyer that the car is in transit, the date of shipment, and if possible, 
where it is located. 

Note to Rules 3 to 9, Inclusive. —The above rules have been prepared 
after conference with representatives of those engaged in the business of 
shipping and receiving perishable food commodities, and have been based 
on recommendations from them in order to meet a condition which has 
resulted in great waste of fresh fruits and vegetables throughout the coun¬ 
try. The rules are designed to prevent delay in unloading, the shipment of 
goods contrary to contract and the resulting traffic congestion and food 
waste. 

It is essential that all licensees should co-operate in good faith with the 
Food Administration, to avoid improper shipments, rejections, and disputes, 
and to arrange quickly for prompt release, handling, or unloading of the 
goods involved, and to submit any dispute promptly to arbitration. It is 
strongly recommended that contracts for the sale of fresh fruits and fresh 
vegetables be definite as to the quality and grade of goods and terms of 
sale and delivery, and be evidenced by a proper memorandum in writing. 
The Food Administration will consider the certificate of any food-products 
inspector of the Bureau of Markets of the United States Department of 
Agriculture as prima facie evidence of the condition of the goods. If no 
such inspector is available, great weight will be attached to inspection by 
expert officials of trade organizations. Where no official inspectors are 
available due weight will be given to the judgment of such unofficial 
experts as may have made inspection or are designated or approved by the 
Food Administration. 

In all cases submitted to arbitration or settlement where the shipment is 
made, draft, bill of lading attached, the consignor should direct the bank 

85 


holding his draft to retain the proceeds thereof and to distribute the same 
according to the result of the final determination. Thereupon the consignee 
should pay said draft and release the bill of lading. 

In the ease of commodities where it is customary to assort or recondition, 
and where necessary to preserve food values and prevent waste, fresh fruits 
and vegetables should be assorted or reconditioned by the consignee upon 
the consignor’s request to recondition and his agreement to arrange for the 
payment of properly substantiated claims. 

B. Additional Special Regulations Governing Commission Merchants, 
Brokers and Auctioneers Dealing in Fresh Fruits or Fresh Vegetables. 

Rule 1. Commission or brokerage not to be unreasonable 
or discriminatory. —The licensee shall not charge directly or 
indirectly an unjust, unreasonable, discriminatory, or unfair 
commission or brokerage on the sale of fresh fruits or fresh 
vegetables. 

Note. —The Food Administration in enforcing this rule will insist that 
any proposed increase in rates be submitted to the local Federal Food 
Administrator and that the reason for any increased rate over the prewar 
normal be justified to him, subject to the general supervision of the United 
States Food Administration before such increased rates is put into effect. 

This rule was formerly included in Series B, General Buie 5, governing 
all licensees as issued November 1, 1917. 

Rule 2. Prompt remittance and proper account of sales 
to be rendered.— The licensee shall remit promptly following 
the sale of fresh fruits or fresh vegetables received on consign¬ 
ment for sale or distribution, and shall render to the consignor 
an account showing the true sales and with charges only for 
services actually performed, and expenses actually incurred by 
the licensee. 

Note. —This rule is in conformity with Special Buie 2, of Series B, issued 
November 1, 1917. 

Rule 3. Agent not to buy from principal unless noted on 
account of sales. —The licensee shall not directly or indirectly 
sell consigned fresh fruits or vegetables or such commodities 
with the sale of which on commission he is entrusted, to himself 
or to anyone connected with his business, unless he notes the 
facts of such transaction on the account of sales. 

Note. —This rule is in conformity with Special Rule 4, of Series B, issued 
. November 1, 1917. 

When a licensee sells to himself or to anyone connected with his business, 
he must at least show on the account sales the quantity thus sold and at 
what price they were taken over. 

Rule 4. Brokers statements to buyers as to terms of sale 

AND QUALITY OF GOODS MEMORANDA TO BE FURNISHED.— The licensee 
engaged in business as a broker shall not make any statement to 
any buyer in reference to terms or conditions of sale of fresh 


86 


fruits or vegetables or to grade, quality, or condition thereof or 
the time of shipment or delivery, without authority, and shall 
deliver to his principal and to the buyer proper memoranda of 
any contract of sale. 

Note. —This rule was issued as Special Rule 7 of Series B, effective Jan¬ 
uary 28, 1918. 

Rule 5. Misrepresentations by brokers prohibited. —The 
licensee engaged in business as a broker shall not knowingly 
misrepresent to his principal or to any other person the condition, 
quality, or grade of fresh fruits or vegetables on arrival; nor 
shall he make any such report on condition or grade without 
stating the basis or authority for such report, unless such report 
is based on his own inspection. 

Note. —This rule was issued as Special Rule 8 of Series B, effective Jan¬ 
uary 28, 1918. 

Note. —The foregoing regulations exact rendering promptly account of 
sales of consigned goods, and in accordance with the true sales, with charges 
only for services actually performed, and expenses actually incurred by the 
licensee. 

Regulations forbid sales of consigned goods directly or indirectly to per¬ 
sons to whom consignments of such goods are entrusted, without noting 
such transaction on the account of sales. 

Receivers of consigned goods may not make rebates directly or indirectly 
to shippers’ agents, or agents or employees of Associations or Exchanges. 

C. Additional Special Regulations Governing All Distributors of 
Potatoes. 

Rule 1. Potatoes not to be shipped unless free from cer¬ 
tain defects. —The licensee shall not ship or sell for food pur¬ 
poses from points of production, potatoes which are not prac¬ 
tically free from frost injury and decay, and which are not 
free from serious damage caused by dirt or other foreign matter, 
sunburn, second growth, cuts, scab, blight, dry rot, or other 
disease, insects, or mechanical means. 

“Practically free” means that the appearance shall not be 
injured to an extent readily apparent upon casual examina¬ 
tion, and that any damage from the causes mentioned can be 
removed by the ordinary processes of paring without appreciable 
increase in waste over that which would occur if the potato were 
perfect. Loss of outer skin (epidermis) only shall not be con¬ 
sidered as an injury to the appearance. 

Note. —This rule was issued as Series B, Special Rule 2, effective Novem¬ 
ber 1, 1917. 

Rule 2. Potatoes to be bought and sold only by the pound 
or in standard containers.— The licensee shall quote, buy, and 
sell potatoes, including sweet potatoes, only by the pound except 

87 


where the said potatoes are put up and sold in standard barrels, 
standard boxes, or standard hampers. 

Notes. —This rule was issued as Series B, Special Rule 3, effective Novem¬ 
ber 11, 1917. 

The Federal law creating a standard barrel for fruits, vegetables, and 
other dry commodities, effective July 1, 1916, provides: 

Section 1. Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled , That the standard 
barrel for fruits, vegetables, and other dry commodities other than cran¬ 
berries shall be of the following dimensions when measured without disten¬ 
tion of its parts: Length of stave, 28 Y 2 inches; diameter of heads, 17% 
inches; distance between heads, 26 inches; circumference of uulge, 64 inches, 
outside measurement; and the thickness of staves not greater than four- 
tenths of an inch: Provided , That any barrel of a different form, having 
a capacity of 7,056 cubic inches shall be a standard barrel. The standard 
barrel for cranberries shall be of the following dimensions when measured 
without distention of parts: Length of staves, 28% inches; diameter of 
head, 16% inches; distance between heads, 25% inches; circumference of 
bulge, 58% inches, outside measurement; and the thickness of staves not 
greater than four-tenths of an inch. 

Rule 3. Potatoes to be graded in commercial potato grow¬ 
ing districts. —The licensee in commercial potato growing dis¬ 
tricts shall assort and grade his purchases and shipments of 
potatoes according to the grades described in Department of 
Agriculture, Bureau of Markets Document No. 7. 

Extract From Bureau of Markets Document No. 7. 

U. S. grade No. 1: 

This grade shall consist of sound potatoes of similar varietal character¬ 
istics, which are practically free (a) from dirt or other foreign matters, 
frost injury, sunburn, second growth, cuts, scab, blight, dry rot, and damage 
caused by disease, insect, or mechanical means. The minimum diameter 
(b) of potatoes of the round varieties shall be one and seven-eighths (1%) 
inches, and of potatoes of the long varieties one and three-fourths (1%) 
inches. In order to allow for variations incident to commercial grading 
and handling, five per centum by weight of any lot may be under the pre¬ 
scribed size, and, in addition, three per centum by weight of any such lot 
may be below the remaining requirements of this grade. 

U. S. grade No. 2: 

This grade shall consist of potatoes of similar varietal characteristics, 
which are practically free (a) from frost injury and decay, and which are 
free from serious damage (c) caused by dirt or other foreign matters, sun¬ 
burn, second growth, cuts, scab, blight, dry rot, or other disease, insects, or 
mechanical means. The minimum diameter (b) shall be one and one-half 
(1%) inches. In order to allow for variations incident to commercial grad¬ 
ing and handling, five per centum by weight of any lot may be under the 
prescribed size, and in addition, five per centum by weight of any such lot 
may be below the remaining requirements of this grade. 

Explanations of grade requirements: 

(a) ‘ 1 Practically free” means that the appearance shall not be injured 
to an extent readily apparent upon casual examination, and that any damage 

88 


from the causes mentioned can be removed by the ordinary process of par¬ 
ing without appreciable increase in waste over that which would occur if 
the potato were perfect. Loss of the outer skin (epidermis) only shall not 
be considered as an injury to the appearance. 

(b) “Diameter’’ means the greater dimension at right angles to the 
longitudinal axis. 

(c) “Free from serious damage” means that the appearance shall not 
be injured to the extent of more than twenty per centum of the surface, 
and that any damage from the causes mentioned can be removed by the 
ordinary processes of paring without increase in waste of more than ten 
per centum by weight over that which would occur if the potato were 
perfect. 

Note. —For the purpose of these recommendations no attempt has been 
made to provide grades for potatoes of extra fancy quality and size, such 
as special baking potatoes used in dining ears, hotels, and restaurants, or 
for lots composed of potatoes of different varietal characteristics, or for 
potatoes under the minimum diameter and other requirements of the U. 8. 
grade No. 2. 

Potatoes of U. S. grade No. 1, unless shipped in bulk, should be placed 
only in new, clean sacks or barrels, which should be well filled, securely 
sewed or covered, and in addition to any necessary statements or marks, 
should be plainly marked: “U. S. No. 1.” Containers of potatoes of No. 2 
grade, also, should be plainly marked “U. S. No. 2.“ 

Notes. —This rule was issued as Series B, Special Rule 3A, effective Jan¬ 
uary 31, 1918. 

The United States Food Administration is convinced that a general 
adoption of those grades will be beneficial to producer and consumer alike, 
will tend to decrease waste, and encourage the production of better quality, 
thus stimulating increased consumption. This has been clearly demon¬ 
strated by careful investigations conducted by the Bureau of Markets of 
the United States Department of Agriculture. 

The Food Administration recognizes that in some sections local conditions 
may be such that an immediate and strict enforcement of these grades 
might be inadvisable. It feels, however, that in such sections as there has 
been a general effort on the part of shippers to adopt this grading that 
those not co-operating are unfair and that their actions are detrimental to 
the best interests of the potato industry, and while due consideration will 
be given to peculiar conditions obtaining in any section, no technical attempt 
to evade the purpose of this rule will be tolerated. The matter will as far 
as possible be handled by co-operation with the United States Department 
and various State Departments of Agriculture and through associations of 
growers and shippers. We shall insist on the sincere and earnest co-opera¬ 
tion of every licensee in this connection. 

A licensee will not be considered as fairly grading his purchases if he 
uses a screen or other method of grading by which more than 5 per cent 
(by weight) of the potatoes excluded from the No. 1 grade are large enough 
for the No. 1 grade. 

Special License Regulations Governing Manufacturers of Bakery 

Products. _ , . 

Note. —Licensees are also subject to General Regulations. 

A. Special Regulations Applying to All Licensees Manufacturing 
Bakery Products. 

Rule A-l. Consumption of wheat flour during august, 
1918, IN BAKERY PRODUCTS OTHER THAN BREAD AND ROLLS, NOT TO 
exceed 70 per cent of previous consumption.— No licensee shall, 
during the month of August, 1918, use in the manufacture of 

89 


any bakery products, except bread and rolls, an amount of wheat, 
or any products of wheat other than bran, shorts or middlings, 
in excess of seventy (70) per cent of the amount thereof 
one-sixth of the amount thereof used by him between February 
1, and July 31, 1918. 

Note.—T his rule does not apply to bread and rolls, but does apply to all 
other bakery products. 

Where two or more manufacturers of bakery products consoli¬ 
date their businesses, the consolidated concern may use 70 per 
cent of the total amount of wheat flour used by the concerns 
entering into the consolidation during the corresponding period 
of 1917. 

Rule A-2. Wheat flour substitutes defined. —Wheat flour 
substitutes, for the purposes of the baking regulations, are bran, 
shorts, and middlings, com flour, corn meal, edible cornstarch, 
hominy, corn grits, barley flour, rolled oats, oatmeal, rice, rice 
flour, buckwheat flour, potato flour, sweet-potato flour, tapioca 
flour, milo, kafir and feterita flours and meals, soya bean meal, 
peanut meal, taro flour, banana flour, and other products of a 
similar nature. 

Rye flour or rye meal is a partial wheat flour substitute on the 
following basis: one-fifth of the wheat flour substitutes used in 
any mixture may be rye flour or rye meal. 

Potatoes also are a wheat flour substitute. Four (4) pounds of 
raw potatoes will be considered the equivalent of one (1) pound 
of the above mentioned substitutes. 

If graham flour, or so-called whole wheat flour is used, there 
must be added to such flour an amount of wheat flour substitutes, 
which, added to the bran, shorts and middlings contained in the 
graham or whole wheat flour, will equal the total amount of 
substitutes required. 

Rule A-3. Defining vegetable shortening was repealed 
July 19,1918. 

Rule A-4. Returns of bakery products must not be ac¬ 
cepted. —The licensee shall not directly or indirectly accept, 
under any guise or arrangement whatever, returns of bread or 
other bakery products, from any person, nor make cash payments, 
nor allow credit, to any retailer or other person for any unsold 
bread or other bakery products; nor shall the licensee exchange 
any bread or other bakery products for other bread or other 
bakery products previously sold by him. 

Rule A-5. Stocks of wheat flour, sugar, and shortening, 
limited. —The licensee shall not, without the written consent 
of the United States Food Adminstrator, or his duly authorized 
representative, keep on hand or have in possession or under con- 


90 


trol, by contract or other arrangement, at any time, wheat flour 
or sugar in a quantity in excess of the reasonable requirements 
of his business for use by him during a period of 30 days, or 
shortening in a quantity in excess of the reasonable requirements 
of his business for use by him during a period of 60 days: Pro¬ 
vided, however , That this rule shall not prevent the licensee 
having in transit sufficient flour or sugar or shortening to main¬ 
tain the licensee’s stock within the limits herein fixed. 

Note. —Only in cases in which peculiar circumstances demand it, will per¬ 
mission be given to a licensee to keep more than thirty days' supply of flour 
or sugar or more than sixty days' supply of shortening on hand or under 
control. A licensee who desires to make an application for such permission 
should present his case to the Federal Food Administrator for the State in 
which the bakery for which permission is asked is located. 

The above rule governs manufacturers of bakery products, 
and requires the licensee to not keep on hand or have under 
control more than sixty days’ supply of shortening. 

“Shortening” as used in this rule does not include butter, and 
the licensee may store or arrange for a season’s supply of butter 
for use in manufacturing the classes of bakery products in which 
the use of animal fats is permitted. 

In cases where a baker purchases flour in carload lots and thus 
secures more than a thirty-day supply, he should distribute the 
surplus to other bakers. 

Rule A-6. When name ‘ ‘ victory ’ ’ may be used. —No licensee 
manufacturing bakery products shall use the name “Victory” 
in connection with the advertising or sale of the same, unless 
the total wheat flour and substitute content of such bakery pro¬ 
ducts contains at least the percentage of wheat flour substitutes 


stated below: 

Per Cent. 

Class 1. Bread and rolls.25 

Class 2. Sweet yeast dough goods.33^ 

Class 3a. Crackers .33^ 

Class 3b. Biscuits, cookies, and ice-cream cones.33>$ 

Class 4a. Cakes...33>5 

Class 4b. Pies . 33^ 

Class 4c. Fried cakes.33 

Class 4d. Pastry.33^ 

Class 5. Quick breads, Boston brown bread, batter cakes, 

and waffles.66% 


Rule A-7. Public eating places must serve limited por¬ 
tions. —No licensee operating a hotel, restaurant, dining car, 
steamship, boarding house, or other public eating place, or club, 
shall serve to any person at any meal more than two (2) ounces 
of bread or rolls of class 1, or four (4) ounces of muffins, corn 

91 











bread, Boston brown bread, baking powder biscuits, or quick 
breads of class 5, or of other breads containing 33}/S per cent 
or less of wheat flour. 

Note. —No limit has been placed upon the amount of whoatlese bread 
that may be served. 

Rule A-8. Baker shall not use sugar in making confec¬ 
tionery OR PRODUCTS OTHER THAN BAKERY PRODUCTS WITHOUT 
OBTAINING CERTIFICATES FROM THE FEDERAL FOOD ADMINISTRATOR. 

—The licensee shall not, after May 15, 1918, use sugar in the 
manufacture, bottling, or preparation of any products other 
than bakery products, until he has obtained from the Federal 
Food Administrator of the State where such product is manu¬ 
factured or prepared, certificates that the total amount of sugar 
to be so used will not exceed his fair share of the sugar then 
available for distribution. The licensee shall not buy sugar 
for such purposes without turning in a certificate for the amount 
purchased. In transferring sugar from his baker’s stock for 
such purposes, he shall cancel certificates representing the 
amount of sugar so transferred and shall file them at the end of 
each month with the Federal Food Administrator whose name is 
signed thereto. 

Note. —The above rule was promulgated May 2, 1918. It does not affect 
licensees who manufacture only bakery products. 

B. Special Regulations Applying to Class 1.—Bread and Rolls. 

Definition: For the purposes of these regulations, bread and rolls are 

defined as follows: Baked mixtures of flour, meal, or similar products, 
with water, and with or without leavening agents, salt, shortening, milk, 
eggs, sweetening, grain extracts, nuts, fruits, seeds, spices, or other 
flavoring materials, such as pan bread, hearth bread, wheat bread, rye 
bread, graham bread, raisin bread, and similar breads and hard rolls, 
soft rolls, milk rolls, Parker House rolls, finger rolls, lunch rolls, bread 
rolls, and similar rolls. 

Rule 1. Twenty-five per cent of wheat-flour substitutes 
must be used. —No licensee shall manufacture any products of 
class 1 without using in the manufacture thereof at least one 
(1) pound of wheat-flour substitutes for each three (3) pounds 
of wheat flour so used. 

Note. —Rye bread must contain at least one (1) pound of wheat-flour 
substitutes for each three (3) pounds of wheat flour used in it. No sub- 
stitures are required for the rye flour used. 

Bread that is prepared for baking by a person other than the 
licensee must not be baked by the licensee unless it contains at 
least the per cent of wheat flour substitutes as specified in the 
above rule. 

The rule supra requiring the licensee to use wheat flour substi¬ 
tute in manufacturing bread and rolls does not apply to bread 

92 


that is made to be used in the observance of religious rites, if 
such religious rites require the use of all wheat flour bread. 

Rule 2. Weight of loaves. —No licensee shall manufacture 
bread except in the following weights, which shall be net weights 
twelve (12) hours after baking: Three-quarters (%) pound, 
one (1) pound, one and a half (IV 2 ) pounds, two (2) pounds, 
three (3) pounds, four (4) pounds, five (5) pounds, or other 
pound weights. 

Provided, That rye bread, the flour and meal content of which 
contains forty per cent or less of wheat flour, need not conform 
to the foregoing weight requirements if such rye bread is sold 
to the consumer by weight and not by the loaf. 

Variations at the rate of one (1) ounce per pound over and 
one (1) ounce per pound under the above specified unit weights 
are permitted in individual loaves, but the average weight of not 
less than twenty-five (25) loaves of any one unit of any one kind 
shall be not less than the weight prescribed by these regulations 
for such unit. 

The licensee may only bake twin or multiple loaves on the 
following conditions: If the twin or multiple loaf is wrapped 
at the bakery and sold to the consumer wrapped and undivided, 
the loaf must conform to the above weight requirements; if the 
twin or multiple loaf is unwrapped or divided before being sold 
to the consumer, each unit of the loaf must conform to the above 
weight requirements. 

Notes.—A twin or multiple loaf is one that is made of two or more por¬ 
tions of dough baked in one pan. 

Single units weighing less than three-quarters pound must not be baked. 

Although a licensee may manufacture loaves only of the weights pre¬ 
scribed, he may cut and sell a portion of a loaf to a consumer. 

Bread may be sold at any time after baking. It is not required that 
bread should remain unwrapped for any specified length of time after 
baking. 

Rule 3. Maximum weight of rolls, two ounces. —No li¬ 
censee shall manufacture rolls except in units weighing not to 
exceed two (2) ounces, net weight, twelve (12) hours after 
baking. 

Note.—T his rule does not prohibit the baking of pans of rolls if the 
units conform to the weight requirements. There is no minimum weight 
requirement for rolls. 

Rule 4. Amount of sugar limited. —No licensee, in making 
products of class 1, shall use more than six (6) pounds of cane 
or beet sugar, or seven (7) pounds of corn sugar, or seven (7) 
pounds of invert sugar to 196 pounds of any flour or meal or any 
mixture thereof. In reckoning the above amounts, the licensee 


93 


shall include added sugars contained in milk, grain extracts, 
and other ingredients. 

Note. —The use of grain extracts, molasses, and other refiners’ products, 
from which granulated sugar can not be obtained commercially is not lim¬ 
ited, except in respect to added sugars. 

Rule 5. Use of shortening limited. —No licensee, in making 
products of Class 1, shall use more than two (2) pounds of 
shortening to 196 pounds of any flour or meal or any mixture 
thereof. 

Note.—T he two (2) pounds of shortening permitted do not include fats 
used in greasing pans. 

Rule 6. Milk may be used if price of bread is not increased 
thereby.— The licensee in making products of class 1 may use 
milk therein in any form or in any quantity, except as the amount 
of added sugar is limited by Rule 4, provided that the price at 
which he sells such bread or rolls is no greater than the price 
at which he sells bread or rolls made without milk. 

Note. —The added sugar in sweetened condensed milk shall be computed 
as one-third of the weight of such sweetened condensed milk. 

Rule 7. Sugar or shortening must not be added to dough. 
—The licensee in making products of class 1 shall not add sugar 
or shortening to the dough during the process of baking, or 
to the bread or rolls when baked. 

C. Special Regulations Applying to Class 2.—Sweet Yeast Dough 
Goods. 

Definition: For the purposes of these regulations, sweet-yeast dough 
goods are defined as follows: Baked mixtures of flour, meal, or similar 
products, with water, yeast, salt, and sweetening, and with or without 
milk, shortening, eggs, fruits, nuts, seeds, spices, or other flavoring 
materials, and filling, such as apple, peach, apricot, plum, cherry, and 
huckleberry cake, cheese cake, coffee cake, coffee rings, coffee half 
moons, coffee wreaths, coffee loaf, cinnamon rolls, struessels, zwiebach, 
and similar products. 

Rule 1. Thirty-three and one-third per cent of wheat- 
flour substitutes must be used.— No licensee shall manufacture 
any products of class 2 without using in the manufacture there¬ 
of at least one (1) pound of wheat-flour substitutes for each 
two (2) pounds of wheat flour so used. 

Rule 2. Prohibiting use of animal fats for shortening was 
REPEALED ON JULY 19, 1918. 

D. Special Regulations Applying to Class 3a.—Crackers. 

Definition: For the purposes of these regulations, crackers (sponge 

and plain goods) are defined as follows: Baked mixtures of flour, meal, 
or similar products, with water, and with or without leavening agents, 

94 


salt, and shortening, such as soda crackers, hard bread, matzoth, pretzels, 
and similar products. 

Rule 1. Fifteen per cent of wheat-flour substitutes must 
be used.— No licensee shall manufacture any products of class 
3a without using in the manufacture thereof at least fifteen 
(15) pounds of wheat-flour substitutes for each eighty-five (85) 
pounds of wheat flour so used: Provided, That this rule shall 
not apply to hard bread and Navy biscuit manufactured for the 
United States Government. 

Rule 2. Restricting use of animal fats as shortening was 
repealed on July 19, 1918. 

E. Special Regulations Applying to Class 3b.—Biscuits, Cookies, 
and Ice-Cream Cones. 

Definition: For the purposes of these regulations, biscuits, cookies, 
and ice-cream cones (sweet goods) are defined as follows: Baked 
mixtures of flour, meal, or similar products, with water and sweetening, 
and with or without leavening agents, salt, flavoring, filling, topping, 
icing, shortening, eggs, milk, gelatin, grains, nuts, fruits, seeds, spices, 
or cocoa, and their products, such as gingersnaps, cookies, honey cakes, 
fig bars, vanilla wafers, graham biscuits, iced goods, sugar wafers, 
ice-cream cones, and similar products. 

Rule 1. Thirty-three and one-third per cent of wheat- 
flour substitutes must be used. —No licensee shall manufac¬ 
ture any product of class 3b without using in the manufacture 
thereof at least one (1) pound of wheat-flour substitutes for 
each two (2) pounds of wheat flour so used. 

Rule 2. Restricting use of animal fats for shortening was 
REPEALED ON JULY 19, 1918. 

F. Special Regulations Applying to Class 4a.—Cakes. 

Definition: For the purposes of these regulations, cakes are defined 

as follows: Baked mixtures of flour, meal, or similar products with 
water, leavening agents, and sweetening, and with or without shortening, 
eggs, milk, fruits, nuts, spices, or other flavoring materials, such as soft 
cake, box cake, wine cake, form cake, sponge cake, layer cake, cup cake, 
drop cake, pound cake, fruit cake, angel food, devil food, and similar 
cakes; and cream puffs, eclairs, macaroons, kisses, and similar products. 

Rule 1. Thirty-three and one-third per cent of wheat- 
flour substitutes must be used. —No licensee shall manufacture 
any products of class 4a without using in the manufacture there¬ 
of at least one (1) pound of wheat-flour substitutes for each two 
(2^ pounds of wheat flour so used. 

G. Special Regulations Applying to Class 4b.—Pies. 

Definition: For the purposes of these regulations pies are defined as 
follows: Articles consisting of one or more baked crusts with filling. 
Pie crust consists of baked mixtures of flour, meal, or similar products, 
with water, shortening, and salt, and with or without sweetening or milk. 

Rule 1. Thirty-three and one-third per cent of wheat- 
flour substitutes must be used. —No licensee shall manufacture 


95 


any products of class 4b without using in the manufacture there¬ 
of at least one (1) pound of wheat-flour substitutes for each two 
(2) pounds of wheat flour so used. 

Rule 2. Prohibiting use of animal fats as shortening 
REPEALED JULY 19, 1918. 

H. Special Regulations Applying to Class 4c.—Fried Cakes. 

Definition: For the purposes of these regulations fried cakes are 

defined as follows: Mixtures of flour, meal, or similar products, with 
water, salt, leavening agents and shortening, and with or without sweet¬ 
ening, fruits, eggs, milk, nuts, spices, or other flavoring materials, made 
by cooking in fat, such as doughnuts, crullers, and similar products. 

Rule 1. Thirty-three and one-third per cent of wheat- 
flour substitutes must be used. —No licensee shall manufacture 
any products of class 4c without using in the manufacture there¬ 
of at least one (1) pound of wheat-flour substitutes for each two 
(2) pounds of wheat flour so used. 

Rule 2. Prohibiting use of animal fats as shortening 
REPEALED JULY 19, 1918. 

I. Special Regulations Applying to Class 4d.—Pastry. 

Definition: For the purposes of these regulations pastry is defined as 

follows: Articles consisting wholly or in part of baked mixtures of flour, 
meal, or similar products, with water, leavening agents, sweetening, 
shortening, and with or without eggs and milk, such as tarts, cream 
rolls, and slices, apple and other fruit slices, apple dumplings, patties, 
puff paste, and similar products. 

Rule 1. Thirty-three and one-third per cent of wheat- 
flour substitutes must be used. —No licensee shall manufacture 
any products of class 4d without using in the manufacture there¬ 
of at least one (1) pound of wheat-flour substitutes for each two 
(2) pounds of wheat flour so used. 

J. Special Regulations Applying to Class 5.—Quick Breads, Boston 
Brown Bread, Batter Cakes, and Waffles. 

Definition: For the purposes of these regulations, quick breads, 
Boston brown bread, batter cakes, and waffles, are defined as follows: 
Baked or fried mixtures of flour, meal, or similar products, with water and 
with or without leavening agents, sweetening, shortening, eggs, and milk, 
such as quick breads, Boston brown bread, corn bread, muffins, baking- 
powder biscuits, batter cakes, butter cakes, griddle cakes, waffles, and 
similar products. 

Rule 1. Sixty-six and two-thirds per cent of wheat-flour 
substitutes must be used. —No licensee shall manufacture any 
products of class 5 without using in the manufacture thereof at 
least two (2) pounds of wheat-flour substitutes for each one (1) 
pound of wheat flour so used. 

Rule 2. Prohibiting use of animal fats as shortening 
REPEALED JULY 19, 1918. 

K. Proclamations Requiring Bakers to Be Licensed. 

96 


EXTRACT FROM THE PROCLAMATION OF THE PRESIDENT OF THE 
UNITED STATES, DATED NOVEMBER 7, 1917. 

“All persons, firms, corporations, and associations, who manu¬ 
facture for sale bread in any form, cake, crackers, biscuits, 
pastry, or other bakery products (excepting, however, those 
whose consumption of any flour and meal in the manufacture 
of such products is, in the aggregate, less than 10 barrels a 
month), are hereby required to procure a license on or before 
December 10, 1917. This includes hotels, restaurants, other 
public eating places, and clubs, who serve bread or other bakery 
products of their own baking. ’ ’ 

EXTRACT FROM THE PROCLAMATION OF THE PRESIDENT OF THE 
UNITED STATES, DATED JANUARY 30, 1918. 

‘ ‘ All persons, firms, corporations, and associations who manu¬ 
facture for sale bread in any form, cake, crackers, biscuits, 
pastry, or other bakery products (excepting, however, those 
already licensed and those whose consumption of any flour and 
meal in the manufacture of such products is, in the aggregate, 
less than 3 barrels a month) are hereby required to procure a 
license on or before February 4, 1918. This includes hotels, 
restaurants, other public eating places, and clubs, which serve 
bread or other bakery products of their own baking. ’ ’ 

Note. —Under the proclamation of November 7, 1917, all bakers using 
ten (10) or more barrels of flours, meals, and substitutes a month are 
required to obtain a license. Under the proclamation of January 30, 1918, 
all bakers using three (3) barrels or more of flours, meals, and substitutes 
a month are required to obtain a license, unless they already have a license. 

The within regulations govern all licensees manufacturing bakery prod¬ 
ucts. These include bakers, hotels, restaurants, dining cars, boarding houses, 
and other public eating places, and clubs which serve bread or other bakery 
products of their own baking. 

Government institutions. —No institution conducted by the United States 
Government or by a State, or any political subdivision thereof, is required 
to obtain a baking license, if it does not sell any of its bakery products for 
consumption outside the institution. 

Hospitals. —No hospital or sanatorium or similar institution, whether 
public or private, or charitable or noncharitable, is required to obtain a 
license if it does not sell any of its bakery products for consumption out¬ 
side the institution. 

Charitable institutions. —No charitable institution, whether public or pri¬ 
vate, is required to obtain a license if it does not sell any of its bakery 
products for consumption outside the institution. 

Note.—A branch of the Young Men’s Christian Association is not a 
charitable institution within the meaning of the term as here used. 

Schools. —A university, college, or school that is not conducted by the 
United States or by a State or political subdivision thereof, and which is 
not a charitable institution, is required to obtain a baking license if it 
operates a bakery that consumes three (3) or more barrels of flours, meals, 
and substitutes a month. 

Boarding camps — employees* eating places. —Persons or companies sup- 


97 


plying meals to employees, whether for cash or as part compensation for 
labor or services—for example, lumber, mining, or contracting companies— 
are subject to license if three (3) or more barrels of flours, meals, and 
substitutes are used a month in baking for employees by such, person or 
company. In calculating the quantity of flours, meals, and substitutes used 
the total amount used in baking in all camps operated by one person or 
company should be included. One license to such person or company will 
cover all camps operated by it. The foregoing principles apply to all com¬ 
mercial and industrial institutions serving meals to employees as well as to 
companies operating camps. 

Bakers using less than three barrels per month. —Bakers, including hotels, 
restaurants, and boarding houses, who use less than three (3). barrels of 
flours, meals, and substitutes a month are not required to obtain a baking 
license. However, such a baker may obtain a license and subject himself 
to the regulations governing baking licensees. If he does so, he shall there¬ 
upon become entitled to purchase wheat flour to be used in baking bread 
or rolls on the basis of one (1) pound of substitutes for every three (3) 
pounds of wheat flour. If he does not subject himself to license, he must 
purchase one pound of substitutes for each pound of wheat flour pur¬ 
chased. 

Ships .—All ships under the American flag, other than those in the United 
States Navy, which use three (3) or more barrels of flours, meals, and sub¬ 
stitutes a month in baking are required to obtain a baking license. Com¬ 
panies operating more than one ship must obtain a separate license for 
each ship that uses three (3) or more barrels of flours, meals, and substi¬ 
tutes a month. Foreign ships, of course, can not be required to obtain a 
license, but if a foreign ship does obtain a license and agrees to observe 
the regulations governing baking licensees it is accorded the privilege of 
buying wheat flour and substitutes on a 3 to 1 basis for baking bread. 

General Information to Bakers: 

Licensees whose methods of doing business or whose kinds and forms of 
products are not in conformity with the within regulations must adjust 
themselves to conform to them. 

The United States Food Administration has not fixed any price at which 
bakery products must be sold. They must, however, be sold at not more 
than a reasonable profit. 

The United States Food Administration disapproves of all kinds of 
rebates or discounts to favored customers. 

The licensee is not required to put his license number on any of his 
bakery products. 

There is nothing in the rules and regulations that forbid licensees from 
donating any of their products to churches and charitable organizations. 

The United States Food Administration disapproves of all kinds of 
rebates. 

As to when and wLat contracts, etc., of the licensee should bear his 
license number, see General License Regulations, Rule No. 22. 

RECOMMENDATIONS TO BAKERS BY UNITED STATES FOOD 

ADMINISTRATION. 

The United States Food Administrator, in view of the necessity for con¬ 
serving wheat flour for shipment to the Allies and our soldiers abroad, 
earnestly urges all bakers to reduce their allotted consumption of wheat 
flour and to use more wheat flour substitutes than is required by these 
regulations, and, because of the unusual demands on our supplies of cane 
and beet sugars and all fats, to reduce their consumption of these sugars 
and shortening below the amounts permitted by the baking regulations. 

The United States Food Administrator earnestly urges all wholesale bread 

98 


bakers to establish as the wholesale prices of their products the prices at 
which they will offer such products for sale in lots of twenty-five (25) 
pounds or more, unwrapped, for cash, at the bakery door, the prices so 
established to be subject to such additional charges as may be fair for 
wrapping and delivering when such services are performed by the baker. 
The United States Food Administrator requests that, when such wholesale 
prices are established, the licensee report this fact and state such prices to 
the Federal Food Administrator in the 'State where his bakery is located. 

Inasmuch as some wholesale bakers in certain communities are now retail¬ 
ing bread at their plants direct to the consumer, unwrapped, undelivered, 
and for cash, at wholesale prices, the United States Food Administrator 
recommends that this practice be extended wherever bakers find it possible 
to do so, adding only sufficient extra charge to cover the extra expense. 

Believing that frequent deliveries are uneconomical and tend to enhance 
prices, bakers are urged to reduce deliveries wherever possible to one a day 
over each route, and to consolidate deliveries or zone their territories in 
order to reduce the expense of deliveries as far as possible. 

All the foregoing regulations relating to manufacturers of bakery prod¬ 
ucts were promulgated May 3, 1918. 

Special License Regulations Governing 
Dealers and Brokers in Cotton Seed and Peanuts and Cotton Ginners, 
Crushers of Cotton Seed, Peanuts, Soya Beans, Palm Kernels and Copra. 

Importers of Peanuts, Peanut Oil, Soya Beans, Soya Bean Oil, Palm 
Kernels, Palm Kernel Oil, Copra, Copra Oil and Palm Oil, and Dealers 
and Brokers in Such Imported Products. Refiners of, and Dealers and 
Brokers in, Cotton Seed Oil, Peanut Oil, Soya Bean Oil, Palm Kernel 
Oil, and Copra Oil. 

Note. —The following special regulations applying to licensees above 
named, were effective July 1st, 1918. All licensees subject to these regula¬ 
tions are also subject to General License Regulations. 

A. Special Regulations Governing Licensees Dealing in Cotton Seed and 
Peanuts, Brokers in Such Commodities and Cotton Ginners 

Note. —Application for a permit authorizing an exception to any of the 
following rules should be addressed to the United States Food Administra¬ 
tion, Washington, D. C. 

Rule 1. Storing facilities must be adequate.— The licensee 
shall not receive any commodities specified in his license, in ex¬ 
cess of his facilities to store same and shall not store on the 
ground, in any building, or other place in such a manner that 
damage or waste will tend to result to such commodities from 
weather conditions or other causes. 

Rule 2. Cotton seed not to be sold for feed or fertilizers. 
—The licensee shall not, without the written consent of the 
United States Food Administrator, sell or use cotton seed for 
feed or fertilizers. 

Note. —This rule does not prohibit the sale of cotton seed meal for fer¬ 
tilizing or feeding purposes. 

Rule 3. Licensee must not pay higher prices for cotton 

SEED, OR PEANUTS, IN ONE MARKET THAN IN ANOTHER.— No licensee 

99 


shall pay or offer to pay higher prices for cotton seed or peanuts 
in one market than he pays or offers to pay for cotton seed or 
peanuts of the same quality in any other market; provided, 
however, that when zones are established as mentioned in the 
note to Rule B-8, he may pay varying prices in the several 
zones, but must pay the same price at all points in the same 
zone on the same day for cotton seed or peanuts of the same 
quality. 

Rule 4. Cotton seed or peanuts to be held only sixty 
days—exception. —The licensee shall not store, keep on hand, or 
have in his possession, or under control by contract or other 
arrangement, cotton seed or peanuts for a longer period than 
sixty days; provided, however, that he may store a quantity of 
less than twenty tons for such longer period as may be necessary 
for the requirements of his business. 

Rule 5. Cotton seed or peanuts to be sold at not more 
than reasonable advance over cost. —The licensee shall sell 
cotton seed and peanuts at not more than a reasonable advance 
over the actual cost to him of the particular cotton seed or 
peanuts sold, without regard to the market or replacement value 
at the time of sale. 

Note. —The United States Food Administration will determine and 
announce differentials, spreads or compensation to represent the difference 
between the price paid for these commodities and the total amount any 
licensee engaged in the business of buying, selling or otherwise dealing in 
them, as principal or agent, shall be entitled to receive from the sale or 
negotiation thereof. 

Rule 6. Carload shipments—minimum weights. —All car¬ 
load shipments of cotton seed or peanuts shall be made in cars 
loaded to their capacity, unless a different minimum is authorized 
by special written permission of the United States Food 
Administrator. 

Rule 7. Wasteful practices forbidden. —Every licensee 
owning, controlling or operating a ginnery, shall clean seed 
cotton and separate the seed from the lint in an efficient manner. 
He shall not add to or mix with any cotton seed, any matter 
which may or may not have been separated in the process of 
ginning. 

Rule 8. Unreasonable charges by ginners prohibited.— 
No licensee owning, controlling or operating a ginnery shall make 
any unreasonable charge for the service of cleaning seed cotton 
or separating the seed from the lint. 

Note. —The United States Food Administration may determine and 
announce the charge to be made by licensees for performing the service 
known as ginning. 

Rule 9.—A licensee who buys cotton seed in less than carload 


100 


quantities for sale or shipment in carload quantities, shall buy 
at a gross margin below the carload market price at railroad 
points, not to exceed $3.00 per ton. The cost of hauling from 
distant points to the railroad may also be deducted. 


B. Special Regulations Governing Licensees Crushing Cotton Seed, 
Peanuts, Soya Beans, Palm Kernels or Copra, and Dealers 
and Brokers in the Resulting Oils 

Note.—C rushing mills which buy and sell cotton seed or peanuts are sub¬ 
ject in such operations to the foregoing Special Rules governing dealers. 
Crushing mills which import raw materials are subject in such operations 
to rules governing importers, following. 

Application for a permit authorizing an exception to any of the follow¬ 
ing rules should be addressed to the United States Food Administration, 
Cotton Seed Division, Washington, D. C. 


Rule 1. Storing facilities must be adequate. —The licensee 
shall not receive any commodities specified in his license, in ex¬ 
cess of his facilities to store same and shall not store on the 
ground, in any building, or other place in such a manner that 
damage or waste will tend to result to such commodities from 
weather conditions or other causes. 

Rule 2. Licensee must not pay higher prices for cotton 

SEED, OR PEANUTS, IN ONE MARKET THAN IN ANOTHER. —No licensee 

shall pay or offer to pay higher prices for cotton seed or peanuts 
in one market than he pays or offers to pay for cotton seed or 
peanuts of the same quality in any other market; provided 
however, that when zones are established as mentioned in the 
note to Rule 8, he may pay varying prices in the several zones, 
but shall pay the same price at all points in the same zone on 
the same day for cotton seed or peanuts of the same quality. 

Rule 3. Stock of material and oil limited. —The licensee 
shall not keep on hand or in his possession or under his control 
by contract or other arrangement at any time. 

(1) Any greater quantity of cotton seed, domestic peanuts, 
and domestic soya beans than shall be equivalent to its normal 
crushing capacity for a period of sixty days, except that a 
licensee crushing two or more of such commodities may hold 
without special permission a supply of material for ninety days 
crushing, if the total amount of no one of such commodities 
exceeds a sixty days’ supply. 

(2) Any greater quantity of copra, palm kernels, imported 
soya beans or imported peanuts, than shall be equivalent to its 
normal crushing capacity for a period of six months. 

(3) Any cottonseed oil, copra oil, peanut oil, soya bean oil, 
palm oil or palm kernel oil, that exceeds the equivalent of its 
production for two months. 


Note.—S ixty days are considered calendar days, equivalent to fifty-two 
working days. 

101 


Rule 4. Cotton seed, peanuts and oil not to be kept 
over specified time.— The licensee shall not store or keep in his 
possession or under his control, by contract or other arrange¬ 
ment. 

(1) Any cottonseed or peanuts for a period longer than sixty 
days, except during the period of actual operation of his mill; 

(2) Any cottonseed oil, peanut oil, soya bean oil, palm oil, 
palm kernel oil or copra oil, for a period exceeding four months. 

Rule 5. Licensee not to handle oil produced by others. 
—The licensee shall not buy or sell or have in his possession any 
cottonseed oil, peanut oil, soya bean oil, palm oil, palm kernel 
oil or copra oil, other than of his own manufacture; provided, 
that this rule shall not prevent a licensee from purchasing any 
such oil for use in a refinery owned by him and actually in 
operation. 

Rule 6. Limitations in buying and selling. —(a) The 
licensee shall not buy or sell new crop cotton seed or peanuts 
grown in the United States, or any products made or to be made 
from such cotton seed or peanuts before August 1 of the year 
covering such new crop. 

(b) The licensee shall not resell or dispose of any peanuts 
bought or controlled by him except by crushing, without the 
written permission of the United State Pood Administration. 

(c) The licensee shall not make any contract for the purchase 
or sale of cottonseed meal, cottonseed cake, cottonseed hulls, 
peanut meal or soya bean meal for shipment or delivery more 
than sixty days after the making of such contract. 

(d) The licensee shall not make any contract for the sale of 
products extracted from imported commodities, except against 
actual purchases of the said commodities. 

Rule 7. Cottonseed meal specifications and quotations.— 
The licensee shall not knowingly produce any cottonseed meal 
or cake testing less than 7 per cent ammonia, or its equivalent 
of 36 per cent protein, and testing over 7 per cent oil. In making 
quotation of cottonseed meal or cake, or peanut meal or cake, 
upon either the protein or fat content or combination thereof, 
he shall not use any range of percentages, but shall state that 
the product offered contains not less than a definite percentage. 

Rule 8. Commodities must be sold at not more than rea¬ 
sonable advance over cost.— The licensee shall sell the products 
of cotton seed, peanuts and soya beans at not more than a 
reasonable advance over the average cost to the licensee of 
the cotton seed, peanuts or soya beans from which such products 
are manufactured. A licensee who operates one or more cotton 
ginneries or crushing mills, shall keep separate accounts and 
make reports to show separately the operations of each; for the 


102 


purpose of this rule each cotton ginnery or crushing mill shall 
be considered as a unit, and the licensee shall not be permitted 
to average any costs, profits or losses between such units. 

Note. —The United States Food Administration will divide the cotton 
producing territory of the United States into zones and it will determine 
and announce basic yields of oil, meal, linters and hulls from cotton seed 
for each zone, and differentials or spreads to represent the difference 
between the price paid for cotton seed and the total amount any licensee 
engaged in the business of crushing cotton seed may receive from the sale 
of the manufactured products of the cotton seed. The licensee will be per¬ 
mitted to sell all manufactured products in excess of the basic yields with¬ 
out reference to the established margin, provided that the price charged for 
such excess products shall not exceed the average price that will be indi¬ 
cated for the other products in said yield. 

Rule 9. Carload shipments—minimum weights. —All car¬ 
load shipments of cotton seed, peanut, soya bean, copra or palm 
kernel oil when made in tank cars must be loaded to capacity 
and all carload shipments of cottonseed meal, cottonseed cake, 
peanut meal, peanut cake, soya bean meal, soya bean cake, 
cocoanut or copra meal or cocoanut or copra cake, shall be made 
in carloads of not less than 60,000 pounds, unless a different 
minimum is authorized by special written permission of the 
United States Food Administrator; provided, however, that 
when cars of lower carrying capacity are used the maximum 
load which the car will carry may be used without such 
permission. 

C. Special Regulations Governing Importers of Peanuts, Peanut Oil, 
Soya Beans, Soya Bean Oil, Copra, Copra Oil, Palm Kernels, 

Palm Kernel Oil and Palm Oil, and Dealers and Brokers in 
Such Imported Commodities 

Rule 1. Importers must dispose op commodities within 
sixty days. —No licensee importing copra, copra oil or cocoanut 
oil, soya beans, or soya bean oil, palm kernels, palm kernel oil 
or palm oil, peanuts or peanut oil, except licensees for the 
crushing or refining of said commodities, shall store, keep on 
hand or have in his possession or under control by contract 
any of said imported commodities for a period in excess of sixty 
days after the arrival of said commodities in the United States 
without the written consent of the United States Food Adminis¬ 
trator. 

Rule 2. Sales cannot be made except against actual pur¬ 
chases. —No licensee importing or dealing in any of the said 
commodities shall contract to sell any of the said commodities 
or the products extracted therefrom except against actual pur¬ 
chases of the said commodities. 

Rule 3. Copies op import contracts must be furnished to 
pood administration. —Every licensee importing any of the 


103 


said commodities shall forward to the United States Food 
Administration at Washington, D. C., a copy of all contracts 
for the purchase of any of said commodities within three days 
after the making thereof. 

D. Special Regulations Governing Refiners of Cottonseed Oil, Peanut Oil, 
Soya Bean Oil, Palm Kernel Oil, Palm Oil and Copra Oil, 
and Dealers and Brokers in Such Refined Oil 

Rule 1. Cottonseed oil or peanut oil not to be bought 
or sold before august 1.—The licensee shall not buy or sell 
any cottoonseed oil or peanut oil made or to be made from new 
crop cotton seed or peanuts grown in the United States before 
August 1 of the year when such crops are grown. 

Rule 2. Refiners must use efficient methods. —The li¬ 
censee shall refine in an efficient method to produce the largest 
yield of edible oil. 

Rule 3. Contracts must provide for delivery in four 
months. —The licensee shall not make any contract for the sale 
of refined cottonseed oil, refined peanut oil from domestic pea¬ 
nuts or refined soya bean oil from domestic soya beans, for 
shipment or delivery more than four months after the making 
of such contract. 

Rule 4. Imported oil to be sold only against actual pur¬ 
chases. —The licensee shall not contract to sell refined oil made 
from imported commodities except against actual purchases of 
the imported material. 

Rule 5. Domestic oil to be sold at reasonable advance 
over cost.— The licensee shall sell cottonseed oil, peanut oil, 
manufactured from domestic peanuts, and soya bean oil manu¬ 
factured from domestic soya beans, at not more than a reasonable 
advance over the average cost to licensee of the crude oil from 
which such oil was refined. The licensee may consider all 
refining plants operated by or controlled by such licensees as 
a single unit. Licensees who control mills crushing oleaginous 
materials must credit all raw materials obtained from such 
crushing mills at the same price at which they could purchase 
the same products in the open market at the time of transfer. 

Note. —The United States Food Administration will indicate from time 
to time what margins it considers fair. 

Rule 6. Carload shipments—minimum weights. —All car¬ 
load shipments of cottonseed oil when in tank cars shall be 
loaded to capacity unless different minimum is authorized by 
special written permission of the United States Food Adminis¬ 
trator. 

The Following Special Regulations are Extracts From the Special 
Regulations Governing Feeding Stuffs in so far as Those Regulations 

104 


Apply to Dealers and Brokers in Cotton Seed Cake, Cotton Seed Hulls, 
Peanut Meal, Copra or Coconut Meal, Soya Bean Meal and Palm 
Kernel Meal. 

Note. —The above licensees are governed by the Special Regulations 
applying to dealers in Feeding Stuffs contained in this book. The material 
parts are inserted here for convenience, and in order that all regulations 
in regard to Cottonseed products be together for ready reference. 

Rule B-l. Limitation on stock of feed under control.— 
The licensee shall not, without the written consent of the United 
States Food Administrator, or his duly authorized representa¬ 
tive, keep on hand, or have in possession, or under control by 
contract or other arrangement, at any time, any feed ingredients 
or feeding stuffs (cottonseed meal, cake, hulls, peanut meal, 
copra meal, soya bean meal, palm kernel meal) in a quantity in 
excess of the reasonable requirements of his business, for sale 
by him during the next sixty days. 

Provided, that between May 1, and November 1, he may 
accumulate a total stock not at any time in excess of his reason¬ 
able requirements for sale within the next one hundred and 
twenty days. Any such stock exceeding a sixty days’ supply 
shall not be increased after November 1, but nothing in this 
rule shall require its reduction to a sixty days’ supply until 
March 1, of the following year. 

Rule B-2. Feed delivered shall not give buyer excessive 
stock. —The licensee shall not sell or deliver to any person any 
feed ingredients or feeding stuffs (cottonseed meal, etc.) with¬ 
out the consent of the United States Food Administrator if the 
licensee knows or has reason to believe that such a sale or 
delivery will give to such person a supply of any such com¬ 
modities in excess of that permitted by Rule B-l; provided, that 
this rule shall not prevent the sale or delivery of any feed in¬ 
gredients or feeding stuffs (cottonseed meal, etc.) to any person 
for the Federal, State, County or municipal governments or for 
the government of any nation at war with Germany, or the 
sale or delivery of a carload to a licensee having only sufficient 
of that commodity to last until the arrival of such carload. 

Rule B-3. Contracts must provide for shipment in sixty 
days. —The licensee shall not make or have outstanding at any 
time any contract for the sale of any feed ingredients or feed¬ 
ing stuffs (cottonseed meal, cottonseed cake, hulls, peanut meal, 
soya bean meal, copra or cocoanut meal or palm kernel meal) 
for shipment or delivery more than sixty days after the making 
of such contract except for seeding purposes; provided, how¬ 
ever, that this rule shall not apply to contracts with the Federal, 
State, County, or municipal governments or with the government 
of any nation at war with Germany. 

105 


Rule B-4. Carload shipments—minimum loading. —All car¬ 
load shipments of feeding stuffs shall be made in car lots of not 
less than 60,000 pounds unless a different minimum is authorized 
by special written permission of the United States Food Adminis¬ 
trator; provided, however, that when cars of lower carrying 
capacity are used the maximum load which the car will carry 
may be used without such permission. 

Rule D-l. To be sold at reasonable advance over cost of 
particular lot sold. —The licensee shall sell cottonseed meal, 
cottonseed cake, cottonseed hulls, peanut meal, copra or cocoanut 
meal, soya bean meal and palm kernel meal at not more than a 
reasonable advance over the actual cost of the particular com¬ 
modity sold, without regard to the market or replacement value 
at the time of sale. 

Note. —The United States Food Administration will from time to time 
determine and announce differentials, spreads, compensation, brokerage and 
commissions to represent the charge that the licensee may make for buying, 
selling, handling or dealing in the above commodities. 

Rule D-2. New crop cottonseed products not to be bought 
or sold before august 1.—The licensee shall not buy or sell 
cottonseed or peanut meal, cottonseed cake or cottonseed hulls, 
made or to be made from new crop cottonseed or peanuts, grown 
in the United States before August 1, of the year in which such 
cotton crops are grown. 

Note. —Under Special Kule B-3, these products can be bought or sold 
after August 1, for not more than sixty days’ delivery. 

Rule D-3. Quotations based on protein or fat content.— 
Licensees who base quotations of cottonseed or peanut meal or 
cake upon either the protein or fat content, or combination there¬ 
of, shall not use any range or percentages but shall state that 
the product offered contains not less than a definite percentage. 

GRAIN 

The Organization of the Grain Corporation. 

In undertaking the purchase of wheat, it was determined to 
dislocate the normal machinery of the grain and other trades to 
the least degree possible, consonant with the elimination of spec¬ 
ulation, and therefore, the Food Administration determined to 
make this purchase at the primary interior terminals through the 
already established marketing machinery of the country, and to 
follow the customs of the trade as closely as possible in its opera¬ 
tions. The finance for these operations was provided by the 
United States Treasury. It was decided to set up a corporation, 
the whole of the stock of which should be owned by the United 


106 


States Government, and for this purpose the United States Food 
Administration Grain Corporation was organized on the author¬ 
ity of the President with a capital of $50,000,000, its, directi on 
being in the hands of the Grain Division of the Food Adminis¬ 
tration. By an executive order of the President, dated June 21, 
1918, the capital stock of this corporation was increased from 
$50,000,000 to $150,000,000.<^This Corporation was organized as 
an agency for making effective the Government guarantee of 
wheat prices. Under the Food Law a guaranteed minimum 
price of $2.00 ^per bushel for wheat was established for the 1918 
harvest. See Sec. 11 of Food Control Law. The expansion of 
the grain corporation by the executive order of the President, 
above referred to, was issued to accomplish two purposes: 

First : To enable the Food Administration to make the neces¬ 
sary readjustments in wheat price to cover the increase in rail¬ 
way rates. The intention is, so far as the complex problem of 
railway rates will permit, to readjust prices at the guaranty ter¬ 
minals on such a footing as to place the farmer in the position, 
as near as may be, he enjoyed prior to the increase in rates. A 
Traffic Committee is working on the problem. 

The second purpose of the President’s Executive order was to 
provide for the increased capital to the Grain Corporation neces¬ 
sary to carry out the Government guaranty to the producer. Xh&- 
Food Administration operates its handling of wheat, flour, and 
other cereals through the Food Administration Grain Corpora¬ 
tion, the capital of which during the past year has been $50,000,- 
000, the whole of the stock being owned by the Government. The 
full appropriation under the Food Bill for this purpose is $150,- 
000,000 and the balance of the capital must now be employed in 
order to make good the guaranty, in view of the large harvest. 
The Grain Corporation will, on July 1, have completed its oper¬ 
ations for the past harvest year and will show its original capi¬ 
tal intact, with a small surplus, as the result of its trading oper¬ 
ations. The turn-over of the Grain Corporation during the year 
in wheat, flour, beans and other products purchased for internal 
and Allied Army and Navy purposes was about $450,000,000. 

Organization of the Milling Division. 

Under the leadership of leading representatives of the Millers 
of the country, which was undertook to regulate their trade by 
a voluntary agreement, to the end that maximum efficiency in 
operation should be maintained, milling profits restrained within 
determined limits, and conservation measures undertaken to pre¬ 
vent waste in flour production. The Milling Division has fur- j 
nished the material and the machinery for the purchase of all of ' 
the flour requirements of our European Allies. The Milling t 

107 




Division, in co-operation with the Distribution Division, exercises 
supervision over the operations and profits of licensed flour job¬ 
bers and handlers of flour, where such jobbers, etc., are allied 
with, or controlled by flour milling interests. The activities of 
the Milling Division are directed through its general office organ¬ 
ization at New York, and the nine divisional offices located at 
milling centers throughout the United States; comprehensive, 
periodic reports bringing them in direct contact with the mills. 

Organization of the Wholesale and Retail Division. 

The control of the flour wholesalers and flour jobbers was cov¬ 
ered by a presidential proclamation. The special regulation gov¬ 
erning wholesalers and jobbers of licensed, non-perishable food 
commodities contained in this book, contain all the regulations 
governing wholesalers and jobbers of wheat flour. This trade 
is subject to a system of reports required to be made under 
oath to the Food Administration. These reports are closely 
scrutinized, and any violators of the law which are disclosed by 
these reports, will, of course, be subject to a revocation or sus¬ 
pension of their license, and liable also, td a prosecution under 
the statute. 

Voluntary Agreements Under Section 2 of the Food Control Act. 

Section 2 of the Food Control Law, provides that in carrying 
out the purposes of this law, the President is authorized to enter 
into any voluntary arrangements with any agency or person, etc. 
Pursuant to the power thus invested in the President, a volun¬ 
tary agreement between the Food Administration Grain Cor¬ 
poration and Elevators, in the following form, was submitted to 
all Elevators and'Warehouses in the United States: 

Agreement. 

THIS AGREEMENT made and entered into this. 

day of., 191., between the FOOD 

ADMINISTRATION GRAIN CORPORATION (hereinafter 
called the “Grain Corporation”), party of the first part, and the 

undersigned . (hereinafter 

called the “Proprietor”), party of the second part: 

WITNESSETH: 

WHEREAS, The Grain Corporation has been created, and is 
being used, by the President of the United States, as an agency 
to carry out the provisions of an Act of Congress, approved 
August 10, 1917, known as the Food Control Act; 

WHEREAS, The undersigned. 

is the proprietor of an elevator located at. 

capacity...bu.; character of plant (wood, steel, con- 

Cross out words that do not apply. 

crete, tile), or list of elevators attached and made a part hereof 

108 










(hereinafter, whether one or more, called the “Elevator”), 
which is maintained and used for the storage of wheat, and the 
Proprietor is desirous of aiding and promoting the efficient ad¬ 
ministration of said Act and of securing the purposes thereby to 
be accomplished; 

NOW, THEREFORE, In consideration of the premises, it is 
agreed between the parties hereto as follows: 

First : (a) The Proprietor grants unto the Grain Corpora¬ 

tion the right at any time, to direct the retention in the Elevator 
of all or any part of such stocks of wheat owned by the Pro¬ 
prietor as may at the time of such direction be in the Elevator, 
and similarly to direct the retention of stocks of wheat which 
may be accumulated in his ownership at any time thereafter, 
and the Proprietor agrees to abide by and perform such direc¬ 
tion, and the Grain Corporation agrees to pay the Proprietor 
from the date of such retention until relinquished or the grain is 
shipped or delivered in accordance with its direction, a rate of 
one fifteenth (1/15) cent per bushel per day, which rate covers 
storage, insurance and interest. 

(6) The Proprietor grants unto the Grain Corporation the 
right to direct the shipment and delivery of all or any part of 
such stocks of wheat as may at the time of such directions be in 
the Elevator, and the Proprietor agrees to abide by and perform 
such direction, and the Grain Corporation agrees to adjust 
freight and prices so that the net returns to the Proprietor F. 0. 
B. the Elevator shall be the same as if shipped to the Grain Cor¬ 
poration’s basic terminal market customarily used before the 
exercise by the Grain Corporation of this right of direction. 

(c) The Proprietor grants unto the Grain Corporation the 
right at any time and from time to time to engage and reserve 
all or any portion of the empty storage space in the Elevator for 
the purposes directed by the Grain Corporation and the Propri¬ 
etor agrees to abide by and perform such engagement, reserva¬ 
tion and direction, and the Grain Corporation agrees to pay the 
Proprietor therefor, during such period of engagement and reser¬ 
vation, a fair rate of storage; and as actual grain accumulates in 
such space, the storage, insurance and interest, as provided in 
clause (a) above. 

Second : The Proprietor agrees, in the absence of any con¬ 
trary direction under the grants aforesaid, to ship all wheat 
owned by the Proprietor in the Elevator in the regular course of 
business as fast as cars are available, and to use all due diligence 
in obtaining cars for such shipments, and agrees that in purchas¬ 
ing wheat at country points the price to the seller will not be 
depressed by the possible expense of carrying wheat in the Ele¬ 
vator due to car shortage. In case the Proprietor, from and 

109 


after the date of his first weekty report in January, 1918, to the 
United States Food Administration, shall be unable to ship in 
any week covered by the time embraced in any weekly report, 
such total quantity of all grains, including shipments of wheat, 
corn, rye, oats, barley, as make the equivalent of at least twenty 
per cent, of the amount of wheat (wheat only) in the Elevator at 
the beginning of such week, the Grain Corporation agrees to pay 
to the Proprietor, to cover insurance and interest for such week, 
seven-twentieths of a cent, per bushel, on the amount of wheat in 
the Elevator at the beginning of such week. For the purposes 
of this paragraph, wheat retained in the Elevator pursuant to 
the provisions of Article First, Clause (a) hereof, shall be deemed 
equivalent to shipment, but on all wheat so retained, the Grain 
Corporation will make payment to the Proprietor in accordance 
with the provisions of said Clause (a). 

Third : As additional consideration for the grants and agree¬ 
ments of the Proprietor aforesaid, the Grain Corporation agrees 
that it will protect the Proprietor against any decline which may 
take place at any time in the Grain Corporation’s price-basis at 
the said terminal, to the extent of the unsold wheat belonging to 
the Proprietor in the Elevator or en route from the Elevator to 
the terminal. 

Fourth: The Proprietor agrees to obey all rules and regula¬ 
tions of the United States Food Administration, and except as 
herein expressly provided otherwise, the Proprietor shall be free 
to continue the conduct of his lawful business, as if this agree¬ 
ment did not exist. 

Fifth : This agreement shall remain in force during the effec¬ 
tive period of said Food Control Act, unless sooner terminated 
by the Grain Corporation as provided in Article Sixth hereof. 

Sixth: This agreement may be terminated by the Grain Cor¬ 
poration at any time by giving thirty days previous notice there¬ 
of to the Proprietor and in case such notice of termination is 
given, the Grain Corporation agrees to protect the Proprietor, in 
respect to all his stocks of wheat in the Elevator at the date of 
such notice, against any decline in the Grain Corporation price- 
basis as provided in Article Third hereof. 

WITNESS our hands and seals the day and year first above 
written. 

FOOD ADMINISTRATION GRAIN CORPORATION, 
Attest: By 


Secretary. Vice-President. 


Witness: 


(Elevator sign here) 


110 







A substantially similar voluntary agreement was created be¬ 
tween the Food Administration Grain Corporation and the flour 
millers. This agreement was in the following form: 

“THIS AGREEMENT , Made and entered into this. 

day of.A. D. 1917, between the Food Ad¬ 

ministration Grain Corporation, of the one part, and the under¬ 
signed. of. 

(hereinafter called the miller), of the other part; 

WITNESSETH: Whereas, The said Food Administration 
Grain Corporation has been created pursuant to an Act of Con¬ 
gress approved August 10, 1917, and known as the Food Control 
Act; and 

NOW, THEREFORE, In consideration of the premises it is 
mutually agreed as follows: 

First : The miller hereby agrees that in purchasing wheat 

.shall observe and respect and be governed by all rules 

and regulations which said Food Administration Grain Corpora¬ 
tion may from time to time enact and promulgate. 

Second: Said Food Administration Grain Corporation hereby 
expressly guarantees the miller against a loss by a decline in 
value on all accumulated surplus of unsold wheat bought in 
accordance with the Grain Corporation’s regulations, and flour 
ground therefrom, in the event of a decline from the price at 
which said wheat was bought, which said guaranty shall be ad¬ 
justed promptly after change of price. Said Corporation 
further agrees to endeavor to maintain in available positions, an 
adequate supply of suitable wheat to meet the milling demands 
of the miller at the general price level of wheat, as recommended 
by the Price Commission with such adjustments, by reason of 
freight, storage, insurance, interest or other causes as shall be 
deemed necessary by the Grain Corporation, it being the intent 
of the Grain Corporation to make no profit on sales of wheat to 
the miller. 

Third : In consideration of the assurance against loss by a de¬ 
cline in price as described in Paragraph 2, the miller hereby 
agrees to pay to the said Food Administration Grain Corporation 

a fee equal to one per cent, on all wheat purchased by. 

at a price level based upon that fixed by the Price Commission 
established under the authority of the Food Administrator, or 
purchased under the direction of the Grain Corporation and used 
by the miller for milling purposes (exclusive of grain bought to 
fill existing contracts). This fee shall be accounted for and paid 
over to the Grain Corporation monthly on the basis of grain so 
bought and actually milled during said period. This charge is 


111 








intended, so far as may be, to equalize storage charges and other 
expenses of holding and handling grain held by the said Grain 
Corporation, and it is the intent as above of said Grain Corpora¬ 
tion to make no profit in the sales of wheat to the millers. 

IN WITNESS WHEREOF, The parties hereto have sub¬ 
scribed this agreement by their duly authorized representatives 
the day and year first above written. 

FOOD ADMINISTRATION GRAIN CORPORATION. 
Attest : By 


Witness : 


Plan of Wheat and Flour Control for the 1918 Wheat Crop. 

It is of course generally known that the value of wheat of 
various grades and varieties depends upon three factors: First, 
the relative distance from the consuming markets, because of the 
differences in freight rates to the points named below; second, 
the variety of the wheat and its relative value for flour produc¬ 
tion ; third, the grade of the wheat as to quality and impurities 
within the various varieties. 

These differences have been established by years of custom and 
experience, and it is the object of the Food Administration, in 
giving effect to the law, to equably reflect these differences in 
value as far as physically possible. 

In order to simplify accounting and to avoid “red tape/’ the 
President authorized the creation of the United States Food 
Administration Grain Corporation, as in instrument of the Food 
Administration, to carry out the financial details of buying and 
selling wheat and various cereal commodities. Therefore con- 
1 tracts and payments are made in the name of the United States 
Food Administration Grain Corporation, which operates without 
profit, charging such differentials as will cover risks, storage, and 
insurance. 

Likewise then United States Department of Agriculture, acting 
under the Grain Standards Act, has endeavored to establish 
wheat grade definitions according to relative merits of various 
qualities and varieties of wheats. 

The following are the fair price basis, and wheat classes and 
grades, on which the Food Administration Grain Corporation 
will buy wheat in elevators at the points named: 

1. The wheat grades are those adopted by the United States 
Department of Agriculture, under the Grain Standards Act* 
July 15, 1918. 


112 







2. The Food Administration “fair prices” are named below 
for “basic” wheats, and the market relations fixed as follows: 


New York.....$2.39% 

Philadelphia ... 2.39 

Baltimore . 2.38% 

Newport News. 2.38% 

Duluth . 2.22y 2 

Minneapolis .2.21% 

Chicago .. 2.26 

St. Louis. 2.24 

Kansas City. 2.18 

Omaha . 2.18 

New Orleans . 2.28 

Galveston . 2.28 

Tacoma . 2.20 

Seattle .. 2.20 

Portland. 2.20 

Astoria . 2.20 

San Francisco . 2.20 

Los Angeles... 2.20 


BASIC WHEATS.—No. 1, Northern Spring; No. 1, Hard 
Winter; No. 1, Bed Winter; No. 1, Durum; No. 1, Hard White. 
Intermountain basis f. o. b. outgoing car, $2.00. 

The above are for “basic” wheats. Certain other classes and 
varieties of wheats will be dealt in at premiums over, and others 
at discounts under, the above prices. 


The “premium” wheats are as follows: Premium 

No. 1, Dark Hard Winter . 2 cents 

No. 1, Dark Northern Spring. 2 cents 

No. 1, Amber Durum . 2 cents 

The ‘ ‘ discount ’ 9 wheats are as follows: Discount 

No. 1, Yellow Hard Winter.:. 2 cents 

No. 1, Red Spring . 5 cents 

No. 1, Red Walla. 7 cents 

No. 1, Red Durum . 7 cents 

No. 1, Soft White . 2 cents 

No. 1, White Club . 4 cents 


DISCOUNTS FOR OTHER GRADES THAN No. 1 

No. 2, Wheat, 3 cents under No. 1. 

No. 3, Wheat, 7 cents under No. 1 

Grade below No. 3 will be dealt in on sample on merit. 

Note. —The grade discounts for No. 2 and No. 3 are made with the 
expectation that mills and dealers will absorb the better qualities of these 

113 





























grades at a premium over these fixed differences at which the Government 
will buy, and with the expectation that the qualities tendered to the Govern¬ 
ment will approach the minimum of the grade. It is also expected that the 
character of the wheat going into No. 4 and No. 5 grades will be of such 
wide range that it would not be fair to the producer to name a fixed price 
at which the Government will buy. It has therefore been left to the discre¬ 
tion of the Government representatives to buy the wheat which is repre¬ 
sented by the No. 4 and No. 5 grades, as well as wheat which is represented 
by ‘ ‘ sample, ’ ’ on the basis of their j udgment as to its proper value. 

Where the term 4 4 primary markets ’ ’ is used in this statement it refers to 
points at which the Grain Corporation maintains buying agencies, as named 
above. 

Details of Buying Plan. 

The Food Administration Grain Corporation will buy on the 
above fair price bases at the principal primary markets as 
named. 

The Food Administration Grain Corporation will buy ware¬ 
house receipts in approved elevators at the principal primary 
markets as named above. In the Inter-Mountain territory, 
where there are no public storage facilities available, an adjust¬ 
ment will be made to make effective the $2.00 minimum for the 
No. 1 grade f. o. b. outgoing car, available for transportation to 
a public terminal elevator. The Inter-Mountain region com¬ 
prises Southern Idaho, Western Montana, Western Wyoming, 
Nevada, Utah, Western Colorado, New Mexico, and Arizona, 
further details can be obtained at Grain Corporation offices. 

At all these principal primary markets there is an open market 
where all classes of buyers are well represented, and the pro¬ 
ducer and the consumer will be amply protected through the 
competitive activities of the several interests, the Food Adminis¬ 
tration Grain Corporation being prepared to buy and protect 
the “fair price’’ basis. 

As the miller is restricted to a “ fair price ’ ’ basis for his flour, 
he cannot pay more for wheat than the expense of milling and 
a reasonable profit will allow. 

The farmer can protect himself by the study of the primary 
prices, deducting intermediate charges, or he can ship to the 
Food Administration Grain Corporation, or he may ship to a 
commission merchant at a terminal market, and through him 
secure the benefit of competitive buying. 

There is nothing in the “1918 plan’’ which prevents a buyer 
at point of origin from placing his own grade upon the wheat 
which he purchases. If, by the buyer’s act, the grade is raised, 
it is equivalent to an increase in the price. If the buyer lowers 

114 


the grade, the producer or dealer’s protection is to ship to the 
Food Administration Grain Corporation. 

Marketing Direct to Food Administration Grain Corporation. 

Producers or dealers have the right to bill cars of wheat direct 
to the Food Administration Grain Corporation at any of the 
principal primary markets named above. When the wheat is 
unloaded in the elevator, and weight and grade returns are made 
to the Food Administration Grain Corporation, remittance will 
be made on the basis of weight and grades so reported, and on 
the basis of the Government price less one per cent (1%) admin¬ 
istration charge for the service. 

Transportation. 

The Government does not discriminate between shippers in 
matters of transportation. 

Traffic Bureau. 

The Food Administration maintains a Traffic Bureau for 
the purpose of assisting shippers of grain and flour in securing 
their car supply, and also in expediting the movement of ship¬ 
ments to destination. Application for assistance can be made 
to’ Food Administration Grain Corporation offices in each pri¬ 
mary market. 

CHARGES FOR HANDLING: Country elevators and 
buyers are entitled to receive fair compensation for their 
services in the handling and marketing of wheat, and the 
charges for such service are necessarily a deduction from 
the terminal price of wheat. These charges or margins are 
well established by custom, and vary in different sections of 
the country according to local conditions. 

INSUR ANCE: The Government carries no insurance on 
the property which it owns. It does, however, require that 
the elevator operators shall exercise due diligence in protect¬ 
ing grain stored in their warehouses from ordinary hazards. 
Owners of grain stored in warehouses or elevators should 
therefore protect their grain so stored which has not been 
delivered to or paid for by the Food Administration Grain 
Corporation. 

INSPECTION: Shippers to any of the principal pri¬ 
mary markets should insist that their grain be inspected and 
graded by inspectors licensed by the Secretary of Agri¬ 
culture. 

Producers and dealers, in shipping grain to said primary 
markets, should advise their commission man to see that 
their grain is correctly inspected and graded, and that if 

115 


in his judgment the grain has been improperly graded, an 
appeal should be taken to the Federal Supervisor. 

It is the policy of the Food Administration and of its 
agents and representatives to work in entire harmony with 
the Department of Agriculture in maintaining the integrity 
of grades named and defined by them under the Grain 
Standards Act, in order that the producer, the consumer 
and all interests handling grain may be properly protected. 

The producer or dealer should always keep in mind, that 
if he is not satisfied with the prices paid by individual buy¬ 
ers, or with the grading of wheat, his protection lies in his 
being able to ship to the Food Administration Grain Cor¬ 
poration at the various terminal markets named above. 

Flour Milling Profit Control. 

The plan for the profit control of flour milling for the 1918 
crop is formulated on the basis of naming a maximum “fair 
price ” at which any miller may sell flour and feed. 

This maximum “fair price” is based upon a reasonable allow¬ 
ance, above the fair price for basic wheat, for handling, milling 
and marketing expenses, freight charges on products, and profit. 
It is anticipated that competition will eventually reflect reduc¬ 
tions from these prices. 

Special License Regulations Governing Wheat Millers and Manufac¬ 
turers of Mixed Flour. 

Note. —The following regulations were effective July 22, 1918. The above 
licensees are also subject to the general license regulations, supra, which 
together with the following special regulations, supersede and cancel all 
regulations, governing the above licensees, issued prior to July 22, 1918. 

A. Special License Regulations Governing Manufacturers of Wheat 
Flour, Mixed Flour and Wheat Mill Feed. 

Dealing in Wheat .—Any wheat our miller who resells wheat without 
milling is subject in such operations to the rules governing dealers in wheat 
contained in a separate pamphlet. 

Dealing in Flour or Feed .—Any wheat flour miller who buys flour or feed 
for resale is subject, in such dealings, to the rules and margins prescribed 
for wholesalers or retailers of such commodities. 

Mixed Flour .—Mixed Flour is defined for the purpose of these rules as a 
Mixed Flour containing 50 per cent, or more of wheat flour. Wherever the 
words ‘ 1 Wheat Flour ’ ’ are used in the following rules they shall be construed 
to include all such Mixed Flours, and Whole Wheat or Graham Flours, unless 
otherwise stated. The words * 1 Wheat Miller, ’ ’ wherever used in these rules, 
shall include manufacturers of Mixed Flour. 

Beconditioners of Flour are subject to license under the President’s 
proclamation of October 8, 1917, licensing all persons engaged in the busi¬ 
ness of “manufacturing (including milling, mixing and packing), or dis¬ 
tributing (including buying and selling),” wheat flour. They are also 

116 


subject to the General License Regulations Number 1 and to above Special 
License Regulations governing manufacturers of wheat flour. The word 
‘ ‘ manufacturer ” as used in the title to these regulations is considered to 
include all processing, including reconditioning. Rule 19 of such Special 
License Regulations prescribes the differential permitted to licensees recon¬ 
ditioning flour. 

Rule M. S. 1. Storage space subject to government com¬ 
mand. The storage space or any part thereof in all warehouses, 
elevators and other plants used for the storage of wheat or any 
products thereof shall be at the command of the United States 
Pood Administration whenever the United States Food Admin¬ 
istrator, or his duly authorized representative, shall deem it nec¬ 
essary to utilize such space for Governmental purposes. 

Rule M. S. 2. Storage of wheat limited. No wheat shall be 
received for or kept in storage by any licensee other than for the 
United States Government or some agency thereof for a longer 
period than thirty days without the consent in writing of the 
United States Food Administrator, or his duly authorized repre¬ 
sentative. 

Rule M. S. 3. Thirty days' supply of unsold wheat and 
flour in the aggregate. The wheat miller shall not keep on 
hand or have in his possession at any time wheat or wheat flour 
and wheat mill feed, in quantities in excess of the reasonable 
requirements of his business, for shipment or delivery by him 
during the next thirty days, nor shall he have purchased, or in 
transit, in addition to such thirty days’ stock, more than a suffi¬ 
cient amount of wheat to maintain such thirty days’ stocks, with¬ 
out the written permission of the United States Food Adminis¬ 
tration or its duly authorized representative, provided that this 
rule shall not prevent any licensee from having on hand not to 
exceed a carload of such commodities. 

Notes. — Special Wheat Storage Permits . Application for written permis¬ 
sion to hold a greater quantity of wheat, or to hold wheat for a longer time 
than is permitted by Rules 2 and 3, should be made to the Manager of the 
Grain Zone in which the place of storage is located. It is the intention to 
grant such application freely where the occasion justifies. 

Special Wheat Flour or Mill Feed Storage Permits. Application for writ¬ 
ten permission to store a greater quantity of flour or mill feed, or to store 
flour or mill feed, for a longer time than is permitted by Rule 3, should be 
made to the Federal Food Administrator of the State in which the place 
of storaoge is located. 

Rules Regarding Wheat Conservation. 

Rule M. S. 4. Minimum flour extraction. The wheat miller 
shall not use more than 264 pounds of 58 pound per bushel or 
heavier clean wheat in making 196 pounds of flour. In grinding 
wheat of other test weights he shall not use an amount in excess 

117 


of that shown in the 
of flour. 

Test Weight 
of Wheat 
per Bushel. 

58 lbs. or heavier 
57 lbs. or heavier 
56 lbs. or heavier 
55 lbs. or heavier 
54 lbs. or heavier 
53 lbs. or heavier 
52 lbs. or heavier 
51 lbs. or heavier 


following schedule in 


Pounds Wheat 
per 196 
Pounds Flour. 
264 lbs. 

268 lbs. 

272 lbs. 

276 lbs. 

281 lbs. 

286 lbs. 

292 lbs. 

298 lbs. 


making 196 pounds 


Percentage 
of Flour 
Extraction. 
74.3 
73.2 

72.1 
71 
69.8 
68.6 

67.2 
$5.8 


Definition of Clean Wheat .—Clean wheat shall be construed 
to mean wheat after it has passed over the receiving and first 
milling separators. 

Definition of Bed Dog .—Red Dog (flour or feed) shall be con¬ 
sidered as wheat mill feed for the purpose of these regulations. 


Notes. — Custom Milling and Exchange Transactions. —The above rule of 
extraction applies to custom milling and exchange transactions as well as to 
merchant milling. 

Quality of Flour. —The above rule of extraction must be conformed to 
regardless of the quality of flour produced. 

Labeling of Packages; —The wheat miller complying with the foregoing 
rule may place upon his packages the words ‘ 1 Milled in Accordance with the 
United States Food Administration Regulations . 11 

Allowable Feed Extraction. —If the wheat miller obtains a greater quantity 
of wheat mill feed, in addition to screenings, per barrel of flour, than is 
shown in the following schedule, he has violated the foregoing rule regarding 
flour extraction: 


Test Weight of 
Wheat Per Bushel. 

58 lbs. or heavier. 
57 lbs. or heavier. 
56 lbs. or heavier. 
55 lbs. or heavier. 
54 lbs. or heavier. 
53 lbs. or heavier. 
52 lbs. 'or heavier. 
51 lbs. or heavier. 


Maximum Per¬ 
missible Feed Returns 
Per 196 Pounds 
Flour Manufactured. 
68 lbs. 

72 lbs. 

76 lbs. 

80 lbs. 

85 lbs. 

90 lbs. 

96 lbs. 

102 lbs. 


Rule M. S. 5. Wheat not to be used for feeding; excep¬ 
tions. The wheat miller shall not, without the written permis¬ 
sion of the United States Food Administration, Feedingstuffs 
Division, Washington, D. C., grind, crack or sell wheat or wheat 
flour for feeding purposes or use wheat or wheat flour in manu¬ 
facturing or mixing feed; provided, however, that poultry or 
pigeon feed containing not more than ten per cent of wheat unfit 
for human consumption may be manufactured and sold; pro- 

118 










vided, further, that any wheat unfit for human consumption and 
unfit for poultry or pigeon feed may be used for other feeding 
purposes. 

Rule M. S. 6. Only one grade of flour to be made. The 
wheat miller shall make only one grade of pure wheat flour, 
namely, 100 per cent, “straight” flour, except with the written 
permission of the United States Pood Administration, and such 
100 per cent, flour shall not be subjected to separation or divi¬ 
sion. 

Note. —Application per Permits should be made to the United States 
Food Administration, Cereal Division, Flour Milling Section, Washing¬ 
ton, D. C. 

Rule M. S. 7. Use or sale of wheat flour for other than 
human consumption prohibited. The wheat miller shall not 
use wheat flour or sell such flour to be used for any other pur¬ 
pose than human consumption, or for the manufacture of gluten 
flour or wheat starch, without the written permission of the 
United States Food Administration, Distribution Department, 
Washington, D. C. 

Rule M. S. 8. Manufacture of farina, purified middlings, 
semolina or special granular macaroni flour. Farina, puri¬ 
fied middlings, semolina or special granular macaroni flour shall 
be made only with the written permission of the United States 
Food Administration, Cereal Division, Flour Milling Section, 
Washington, D. C. When permission is granted to manufacture 
such products the wheat miller using other than Durum wheat 
may separate from his wheat for that purpose not to exceed 5% 
of the mill’s wheat flour production, and the wheat miller using 
Durum wheat may separate from his wheat for that purpose not 
to exceed 7 % of his total wheat flour production, provided that 
the total production of wheat flour and the products named 
above in the aggregate shall not be less than is prescribed by 
preceeding Special Rule M. S. 4 for flour extraction. Prompt 
and full reports of all sales of such special products, giving the 
names of purchasers, destinations and amounts sold, must be 
made to the United States Food Administration, Cereal Division, 
Flour Milling Section, Washington, D. C. 

Rule M. S. 9. Wheat not to be wasted. The wheat miller 
shall not subject wheat to any treatment or manipulation that 
will result in waste of wheat from which flour fit for human con¬ 
sumption can be made. 

Rule M. S. 10. Manufacture of mixed flour. The wheat 
miller shall not manufacture mixed flour containing less than 25 
per cent of substitute flours, to-wit, corn flour, barley flour, oat 
flour, rice flour, buckwheat flour, potato flour, sweet potato flour, 

119 


milo flour, kaffir flour, feterita flour, bean flour, cassava flour, 
taro flour or banana flour. All corn flour and barley flour used 
shall conform to the specifications therefor prescribed by the 
regulations governing corn and barley millers. All other sub¬ 
stitute flours used shall be limited, as far as practicable, in mois¬ 
ture, fat content and acidity, so that the resulting product shall 
have good keeping qualities. 

Notes. —The following are the specifications prescribed for corn floui 
and barley flour: 

Corn Flour .—Shall be made from clean, sound corn, hominy, grits or cream 
meal, and shall be of a texture fine enough so that not less than 75% will 
sift through No. 9XX bolting silk, and balance shall sift through No. 72 grits 
gauze; shall be of an even color and shall contain not more than 13 y 2 % 
moisture and 1%% fat by ether extraction, or 12%% moisture and 2% fat. 
Not to exceed 70 pounds of corn flour shall be made from 100 pounds of 
corn. Such corn shall be clean and sound and contain not to exceed 14*4% 
moisture. 

Barley Flour .—Shall be milled from clean, sound barley and shall be of a 
texture fine enough to sift through No. 9XX bolting silk; and shall be of a 
uniform color and shall contain not more than 11%% moisture and 1%% 
fat by ether extraction, and not more than 55 pounds of barley flour shall 
be made from 100 pounds of clean, sound barley. 

Labeling .—The licensee manufacturing mixed flour must state upon the 
package the percentage of all ingredients therein in accordance with the 
requirements of the Bureau of Chemistry, Department of Agriculture, under 
the Pure Food Law. 

Tax .—Mixed flour can be manufactured only under regulations concerning 
mixed flour issued by the Commissioner of Internal Revenue under the 
Internal Revenue Act approved June 13, 1898, as amended by Act of April 
12, 1902. Millers and blenders or others desiring to engage in the manufac¬ 
turing or blending of mixed flour may obtain these regulations upon appli¬ 
cation to any Collector of Internal Revenue or to the United iStates Internal 
Revenue Department, Washington, D. C., requesting specifically copies of 
regulations No. 25 concerning mixed flour. These regulations must be 
strictly complied with. 

Profits, Prices and Differentials. 

Rule M. S. 11. Wheat flour and feed to be sold at reason¬ 
able ADVANCE OVER COST OF WHEAT AND PACKAGES. The wheat 
miller shall sell flour and feed at not more than a reasonable 
advance over the average purchase price of the wheat from 
which it is manufactured, plus the cost of packages; provided 
that if any such miller pays more for wheat than the customary 
market price in that locality, as evidenced by the fair guaran¬ 
teed price basis established by the President’s proclamation of 
February 21, 1918, he shall not be permitted to include in his 
average purchase price, for the purpose of this rule, the excess 
over such customary market price. 

Notes. —Fair Prwe Schedules .—'The United States Food Administration 
will publish from time to time and furnish to any wheat miller a maximum 
fair price schedule for flour and feed established with relation to the guar- 


120 


anteed price basis for wheat. Any sales of flour or feed in excess of this 
fair price schedule will be regarded as a violation of the above rule, and any 
price at or below the fair price schedule will be regarded as a compliance 
with the above rule. 

Mixed Flours .—The above rule and fair price schedule apply to “ mixed 
flour" containing 50% of wheat and whole wheat and graham flour, as well 
as to wheat flour. Sales of mixed flour, whole wheat and graham flour will 
be considered to return an excessive profit if made at a price in excess of 
the fair price schedule or of the licensee's current selling price of wheat flour. 

Soft Wheat Feeds .—The Food Administration will regard as reasonable 
the sale of wheat mill feeds containing not less than 90% soft winter wheat 
at a price not more than $2 in excess of the maximum fair price schedule 
for other wheat mill feeds; provided that all shipments or deliveries of such 
mill feeds are made in packages which are plainly marked “Manufactured 
from soft winter wheat." 

Rule M. S. 12. Package charge. In arriving at the per bar¬ 
rel package cost for the purpose of Rule 11 the licensee shall use 
the current cost of two 98-lb. cotton sacks of standard size and 
grade as quoted for lots of 1,000 bags, plus any freight or trans¬ 
portation charges. The charge for any other size or style of 
packages as furnished by mill or buyer shall be calculated on 
the basis of such 98-lb. cotton sacks, plus or minus the differen¬ 
tial which will be indicated from time to time by the United 
States Food Administration. 

Rule M. S. 13. Flour price schedule and differentials 
should be displayed in mill. The wheat miller shall cause to 
be displayed in his principal place of business and mills, ware¬ 
houses and agencies maintained, controlled or operated by him 
such flour price schedule and package differentials as may be 
furnished to him from time to time by the United States Food 
Administration, and a schedule showing cost of sacks and other 
charges. He shall furnish copies of any such documents to buy¬ 
ers upon request. 

Rule M. S. 14. Maximum permissible margins over carlot 
bulk on various classes of sales. All sales of wheat flour and 
wheat mill feed shall be classified as follows, and the wheat 
miller shall not charge more than the maximum margins indi¬ 
cated for each class over his carlot price, bulk, mill, cash or 
draft terms: 

Class A: Sales to any buyer in carload lots, bulk mill, cash, 
or draft attached to bill of lading. 

Basis. 

Class B: Sales to any buyer in mixed carloads of wheat 
flour, wheat flour substitutes, and feed (contain¬ 
ing at least 40% of feeds and/or wheat flour sub¬ 
stitutes) : 

Flour, not more than 25c. per barrel over basis. 

Feed, not more than 50c. per ton over basis. 

121 


Class C: 

Class I): 

Class E: 

Class F: 

Class G: 

Class H: 

Class I: 


Sales of “Consigned” flour to wholesale dealers 
from cars or docks, in carload lots (not deliv¬ 
ered), 25c. per barrel over basis. 

Sales of “Consigned” flour to wholesale dealers, 
from cars or docks, in less than carload lots (not 
delivered), 35c. per barrel over basis. 

Sales of flour to any buyer, other than individual 
consumer, less than carload lots (not delivered) 
and excepting sales as per Schedules “C” and 
“D” 

Not more than 50c. per barrel over basis. 

Sales of flour in less than carload lots to indi¬ 
vidual consumers (not including bakers or pub¬ 
lic eating places) : 

Not more than $1.20 per barrel over basis. 
Sales of feed to wholesale dealers in less than car¬ 
load lots and not less than one ton: 

Not more than $1.00 per ton over basis. 

Sales of feed to retail dealers in less than carload 
lots and not less than one ton: 

Not more than $2.00 per ton over basis. 

Sales of feed in less than ton lots to feed dealers: 

Not more than $3.00 per ton over basis. 


Notes. — Credit .—Where credit is extended on flour or feed, only the actual 
interest may be added. 

Only One Margin Over Basis Permitted .—Not more than one of the mar¬ 
gins over basis, as indicated above, shall be added by the wheat miller, on 
the sale of any lot of flour or feed. 

Sales of Feed to Consumers .—Sales of feed to consumers must be made at 
not more than a reasonable margin over basis. The Federal Food Adminis¬ 
trator of the State where the mill is located will indicate what margins will 
be considered reasonable. 

Note. —Schedule of fair flour and feed prices basis carload lot bulk at 
mill, which have been designated up to the time of this publication. 

Cost of freight and packages and cost of handling less than carload 
quantities to be added to these prices to find delivered cost to the purchaser 
from mill. 


Milling Point. 

Flour. 

Bran. 

Mixed Middling, Shorts 
Feed, and Bed Door. 

Boston . 

.$10.65 

$29.66 

$31.91 

$32.66 

New York . 

. 10.61 

30.26 

31.51 

32.26 

Philadelphia .. 

. 10.56 

29.86 

31.11 

31.86 

Baltimore . 

. 10.56 

29.66 

30.91 

31.66 

Nashville, Tenn. 

. 10.38 

27.46 

28.71 

29.46 

Atlanta, Ga. 

Louisville, Ky.. 

. 10.73 

31.06 

32.31 

33.06 

. 10.30 

26.86 

28.11 

28.86 

Durham, N. C.. 

. 10.75 

31.26 

32.51 

33.26 

New Orleans. 

. 10.16 

27.26 

28.51 

29.26 

Galveston, Texas . .. , 

. 10.23 

29.76 

21.01 

31.76 

Buffalo, N. Y. 

. 10.33 

28.16 

29.41 

30.16 

Cleveland, Ohio . 

. 10.33 

27.76 

29.01 

29.76 


122 














Duluth, Minn. 

Minneapolis, Minn. . . . 

... 10.05 

23.36 

24.61 

25.36 

. .. 10.01 

23.36 

24.61 

25.36 

Grand Forks, N. D.... 

... 9.77 

20.82 

22.07 

22.82 

Great Falls, Mont. 

. . . 9.33 

16.67 

17.92 

18.67 

Aberdeen, S. D. 

.. . 9.65 

19.95 

21.20 

21.95 

Wichita, Kas. 

.. . 9.58 

19.41 

20.66 

21.41 

Fort Worth, Texas. .. . 

. .. 10.12 

28.66 

29.91 

30.66 

El Paso, Texas. 

. .. 10.36 

31.16 

32.41 

33.16 

Omaha, Nebr. 

.. . 9.89 

22.26 

23.51 

24.26 

Kansas City, Mo. 

. .. 9.89 

22.26 

23.51 

24.26 

Portland. 

.. . 9.95 

23.15 

24.40 

25.15 

Tacoma . 

. . . 9.95 

23.15 

24.40 

25.15 

Astoria. 

.. . 9.95 

23.15 

24.40 

25.15 

Seattle . 

. . . 9.95 

23.15 

24.40 

25.15 

San Francisco. 

... 10.15 

23.75 

25.00 

25.75 

Los Angeles . 

. .. 10.35 

24.30 

25.55 

26.30 

San Diego. 

. .. 10.27 

26.81 

28.06 

28.81 

Chicago . 

... 10.14 

25.26 

26.51 

27.26 

St. Louis. 

... 10.09 

24.46 

25.71 

26.46 


These fair price schedules have been calculated and forwarded to practi¬ 
cally every mill in the country. These schedules will give the price for flour 
and various kinds of feeds that are considered by the Food Administration 
as fair for sales on cash or draft payment prices in carload lots bulk at the 
mill. For the maximum permissible margins on carload bulk on various 
classes of sales, see the above permissable margins. No doubt, competition 
will very often result in lower prices than the so-called “Fair Price Sched¬ 
ule. ” To find what may be considered a fair price from the consumer’s 
standpoint, it is necessary to add to these prices the cost of packages, which 
for flour at the present time, averages approximately 65 cents per barrel 
where flour is shipped in 98-pound or larger sacks, with cost of other con¬ 
tainers running as high as $2.55 a barrel over the .bulk price, where flour 
is shipped in small packages such as two-pound cotton sacks. To find 
the delivered cost of flour in carload lots, it is necessary to add the 
freight from the milling point, which in carload lots from Minneapolis to 
New York at the present time is 69 cents per barrel. When sales are made 
by mills in smaller than carload lots, it is considered fair by the Food Ad¬ 
ministration that additional charges be made because of the additional cost 
of handling the smaller sales and shipments, namely, sales in less than car¬ 
load lots, 50 cents per barrel on flour to dealers (not delivered) and $1.20 
to actual consumers over each mill’s carload fair price schedule. The mar¬ 
gins allowed jobbers who are not millers, remains unchanged, namely, 50 to 
75 cents per barrel when selling to retailers, who in turn, are allowed margins 
of 80 cents to $1.20 per barrel over the cost to them. For the rules and 
regulations governing sales of flour by wholesalers, see Page 51. 

Rule M. S. 15. Permissible price differential for farina, 

PURIFIED MIDDLINGS, SEMOLINA OR SPECIAL GRANULAR MACARONI 

flour. Wheat flour millers manufacturing farina, purified mid¬ 
dlings, semolina or special granular macaroni flour, under the 
special permission of the United States Food Administration, 
Distribution Department, Washington, D. C., may charge a price 
for such products not to exceed 40c. per barrel above the licen¬ 
see’s fair price of 100 per cent, straight grade flour on date 
of sale. 

Rule M. S. 16. Price differential on table bran. Bran 


123 



















intended for human consumption, so-called “table bran/’ may 
be sold at a reasonable advance over the licensee’s fair price for 
bran. 

Rule M. S. 17. Differentials and returns on wheat mill 
feed. In selling wheat mill feed to the consumer at the mill 
door, if the purchaser desires to buy wheat mill feed in bulk and 
the sacks are emptied and left at the mill in undamaged condi¬ 
tion, the miller shall not add to the purchase price any charge 
for sacks. In selling various grades of wheat mill feeds, the 
miller shall sell same at a price not in excess of his carlot price 
for mixed feed, bulk mill, plus or minus the following differen¬ 
tials : 

Shorts, standard middlings, gray shorts, gray middlings, flour 
middlings or red dog, with or without screenings, 

75c. per ton over basis. 

Bran, with or without screenings, $1.25 per ton under basis. 

Note. —'The wheat miller may make such separations of wheat mill feeds 
as his trade may demand, but if the total returns received by him from 
the sale of wheat mill feed manufactured from any given wheat exceeds 
the amount which the Food Administration considers to return a reason¬ 
able profit on an equal quantity of wheat mixed feed, i. e., the entire mill 
run of wheat mill feed, it will be considered that the miller has violated 
Rule 11. 

Rule M. S. 18. Feed to be mixed in 1917 proportion only. 
No wheat miller shall mix any greater percentage of wheat mill 
feed with other feeding stuffs, or sell any greater percentage to 
feed mixers for such mixing, than he mixed or sold in the year 
1917. 

Rule M. S. 19. Differential for reconditioning and blend¬ 
ing. The licensee who blends or reconditions flour not of his 
own manufacture shall not sell such flour in carload lots at more 
than 25c. per barrel over the purchase price; provided that in 
making sales of the character of those described in Rule 14 
under Classes B, C, D, E and F, he may add not to exceed the 
additional margins prescribed therein for such sales. 

Note. —This rule does not apply to wheat millers mixing their own wheat 
flour with purchased wheat or substitute flours. Such mixed flour must be 
sold at not more than the licensee ’a price for wheat flour, in accordance with 
Rule 11. 

Rule M. S. 20. Custom and exchange grinding. The wheat 
miller who receives wheat from farmers ’ wagons and grinds such 
wheat on a toll basis, or exchanges such wheat for flour and 
feed, may charge not to exceed thirty-five cents per bushel for 
each sixty pounds of cleaned wheat so received, and on such 
basis he shall return to the farmer flour and feed in accordance 
with the following schedule: 


124 


Test Weight 
of Wheat 
per Bushel. 

Number Pounds 
Flour 

Returnable. 

Number Pounds 
Hard Wheat Feed 
Returnable. 

Number Pounds 
Soft Wheat Feed 
Returnable. 

58 lbs. or heavier 44 lbs. 

15 lbs. 

14 lbs. 

57 lbs. 

43 V 2 lbs. 

15 y 2 lbs. 

14y 2 lbs. 

56 lbs. 

42y a lbs. 

16y 2 lbs. 

15 y 2 lbs. 

55 lbs. 

42 lbs. 

17 lbs. 

16 lbs. 

54 lbs. 

411/ 2 lbs. 

17y 2 lbs. 

16y 2 lbs. 

53 lbs. 

40y 2 lbs. 

18y 2 lbs. 

17y 2 lbs. 

52 lbs. 

39 y 2 lbs. 

19 y 2 lbs. 

18 y 2 lbs. 

51 lbs. 

39 lbs. 

20 lbs. 

19 lbs. 


Notes. —Nothing in this rule requires a miller to operate upon an exchange 
basis. He may, if he so desires, purchase the wheat and sell flour and feed 
at the prescribed margins or less. 

Sizes of Exchange Transactions .—Rules will be issued immediately 
through the several offices of the Federal Food Administrators governing the 
size of exchange transactions. 

Contracting and Shipping. 

Rule M. S. 21. Uniform contract prescribed. The wheat 
miller shall not sell any wheat flour in quantities of twenty-five 
barrels or more, or wheat mill feed in quantities of five tons or 
more, except by signed contract in the form prescribed below. 
He shall not contract to sell wheat flour or wheat mill feed in 
any quantities without stipulating that the terms of the uniform 
Food Administration contract shall prevail. He shall fill out in 
every such contract covering flour, the flour charge items appear¬ 
ing under “Method of calculating maximum delivered fair 
price,” and in every such contract covering feed, the feed charge 
items appearing thereunder, and shall print under the item 
‘ ‘ Reasonable price schedule ’ ’ the figures furnished to the miller 
by the United States Food Administration for that purpose. 

Note. —This rule requires the confirmation by written contract of every 
telegraphic or other order for flour of 25 barrels or more or feed of 5 tons 
or more, even though by reason of shortage in time the flour is shipped 
before the actual signing of the contract. Until such contract is signed it 
shall be understood that the transaction is subject to the terms and con¬ 
ditions of the United States Food Administration contract. 

Contract Form Prescribed by Rule 22. 


Contract No. Date. 

of .sell (s), and 

of .buy (s), the 


following commodities, on the terms and conditions stated below: 

. 

Destination . 

Routing ... 

Terms of Payment.Draft, through 

.Bank of.. 

125 

















Prices named in this contract are based on (a) effective price schedule, (b) 
“Class of sale, ” (c) freight charge, and (d) package charge, as specified 
below: 


No. 

Pkgs. 

Size. 

Kind. 

Brand. 

Bulk 
Price 
f.o.b. Mill. 

Delivered 
Price in 
Packages. 








Method of Calculating Maximum Delivered Fair Price (Flour in 98-lb. 
Cotton Sacks). 


« 

Flour 

Per Barrel. 

Feed 

Per Ton. 

(a) Maximum fair prices bulk mill as per Schedule 
No. 



(b) Maximum differential, if any, on sale of 
Class . 

(c) Freight charge (including freight tax). 

(d) Cost of sacks (98 lb. cotton for flour). 

(e) Package differential on flour. 

Total. 


(The Schedules, Note and detailed terms and conditions below may be placed 
on reverse of contract form if desired.) 


Reasonable Price Schedule (Bulk Mill). 



Flour. 

Bran. 

Wheat Mixed 
Feeds. 

Middlings, 
Shorts, Red-dog. 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

(Here insert fig 

ures furnished y 

ou by Food Ad 

ministration) 


Soft Wheat Feeds .—The Food Administration will regard as reasonable 
the sale of wheat mill feeds containing not less than 90% soft winter wheat 
at a price not more than $2 in excess of the maximum fair price schedule 
for other wheat mill feeds; provided that all shipments or deliveries of such 
mill feeds are made in packages which are plainly marked 1 ‘ Manufactured 
from soft winter wheat.” 

Note. —The schedule of prices indicated above is based upon a deter¬ 
mined wheat value as indicated by the Government reasonable price guaran¬ 
tee and a maximum permissible miller’s charge. Any price in excess of that 

126 







































based on the schedules printed in this contract should be reported to the 
Federal Food Administrator for your State. 

(Note. —The following should appear on face of contract) : This con¬ 
tract is made subject to terms and conditions printed on back hereof, which 
terms and conditions are binding on both parties to the contract. 

Maximum Permissible Margins Over Basis on Various Classes of Sales. 


Class 
of 

Sale. 

A Anyone 


Mill Sale to: 


B Anyone 


C Wholesale Dealers 


D Wholesale Dealers 


E Anyone other than con¬ 
sumer . 

F Individual consumers 
(except bakers and 
public eating places) 
G Wholesale feed dealers. 


H Retail feed dealers. 
I All feed dealers 


Flour Feed 
Per Bbl. Per Ton. 
.Carload lots, bulk mill, cash 

attached to B/L. None None 

.Mixed carloads of feed and 
flour (containing at least 
40% of feeds and / or 
wheat flour substitutes). . .25 .50 

.From cars or docks, carlots 
(not delivered) where 
flour has been forwarded 

“on consignment’’.25 

. From cars or docks, less 
than carload (not deliver¬ 
ed) where flour has been 
forwarded 11 on consign¬ 
ment’ ’.35 

.Less carloads (except Class 
C or D sales) (not de¬ 
livered) .50 

.Less carloads. 1.20 

.Less carloads and 2,000 lbs. 

or over. 1.00 

.Less carloads and 2,000 lbs. 

or over. 2.00 

.Less than one ton. 3.00 


Credit. —Where credit is extended on flour or feed, only the actual interest 
for time of credit extension may be added by the miller on sale of any lot 
of flour or feed. 

Sales of Feed to Consumers must be made at not more than a reasonable 
margin over basis. The Federal Food Administrator of the State where the 
mill or warehouse is located will indicate what margin will be considered 
reasonable. 

Only One Margin Over Carload Basis Permitted. —Not more than one of 
the margins over carload basis, as indicated above, shall be added by the 
wheat miller on the sale of any lot of flour or feed. 

Terms and Conditions. 

It is Understood and Agreed: 

(1) Food Administration Regulations. —That the buyer and seller shall 
conform to all regulations promulgated by the United 'States Food Adminis¬ 
tration. 

(2) Net Weights. —That the wheat flour and wheat mill feed covered 
by this contract is sold on the basis of net weights when packed, and the 
determining factor as to weight shall be a moisture content not in excess 
of Government allowance. 

(3) Contract Not Subject to Change. —That there are no conditions, 

127 



















representations or warrants, oral or otherwise, and that there shall be no 
assignment or cancellation of this contract except as herein stated, and 
that no agent or representative has authority to modify -the printed terms 
of this contract. 

(4) Shipments Within Thirty Bays. —That the above order shall be 
shipped or delivered as specified within thirty days from the time that the 
order is confirmed by the seller unless a shorter time is expressly provided. 

(5) Routing. —That the seller shall have the right to route all shipments 
unless otherwise stated in this contract. 

(6) Non-Extension of Time. —That there shall be no extension of the 
time of shipment or delivery under this contract except as herein specified. 

(7) Buyer’s Non-Fulfillment of Contract. —That if the buyer shall fail to 
file with the seller within fifteen days of the date of confirmation of this con¬ 
tract shipping instructions permitting the seller to ship at his option within 
the remaining period of the contract, then the seller may cancel this contract 
and the buyer shall pay to the seller an entry charge of 25 cents per barrel 
on flour and 50 cents per ton on feed, plus or minus the market difference, 
provided that if such shipping instructions are received before the expira¬ 
tion of -thirty days from the date of confirmation of this contract, and prior 
to any cancellation being sent, the seller’s right to cancel shall cease. If the 
buyer shall refuse to accept any shipment or delivery as specified hereunder 
or fail to perform any of the other terms of this agreement then the seller 
may cancel this contract and the buyer shall pay to the seller the entry 
charge above provided, plus or minus the market difference. In addition 
thereto the seller may pursue such further remedies as the law may provide. 

(8) Seller’s Non-Fulfillment of Contract. —That if the seller shall fail 
except for the reasons specified in paragraph 9 of this contract to make 
any shipment or delivery as specified then the buyer may at his option can¬ 
cel this contract at any time before actual shipment, and the seller shall 
pay to the buyer the sum of 25 cents per barrel on flour and 50 cents per 
ton on feed, plus or minus the market difference. The buyer may pursue 
such further remedies as the law may provide. 

(9) Exceptions to Seller’s Responsibilities. —That if this contract can¬ 
not be performed by the seller within the time specified, because of Govern¬ 
ment contracts not in contemplation at the time of the contract, or because 
of fires, strikes, labor difficulties, acts of carriers, or other causes beyond 
the control of the seller, and if the seller notifies the buyer of such inability, 
stating the specific cause, as soon as he knows that such inability will pre¬ 
vent performance and in any event on or before the date of shipment or 
delivery, the seller shall not be responsible for failure to perform. In such 
event the buyer shall have the option of cancelling the contract at the 
market difference, provided he exercises such option within 24 hours from 
the time when he receives notice of the seller’s inability to perform. If 
such option is not exercised the contract time of shipment or delivery shall 
be extended until a reasonable time after the termination of seller’s inability 
is removed, but not to exceed thirty days beyond the original date of ship¬ 
ment or delivery. At the end of such additional thirty days’ period the 
buyer shall again have the right to cancel as above provided, or the con¬ 
tract shall be similarly extended. 

(10) Buyer’s Responsibility for Final Payment. —That where buyer 
specifies the bank through which draft is to be presented and to whom pay¬ 
ment is to be made by the buyer, the buyer shall be responsible for final 
payment to the seller. 

(11) Package Differentials. —That both buyer and seller agree to the 
shipment or delivery of commodities named in this contract on the basis of 


128 


the package differentials in effect at date of sale as promulgated by the 
United States Food Administration. 


By. 

Seller. 

By. 

Buyer. 


Rule M. S. 22. Uniform invoice prescribed. —The wheat 
miller shall invoice all wheat flour and wheat mill feed, except 
sales to individual consumers, and except sales of fifteen barrels 
or less of flour and three tons or less of mill feed, on an invoice 
form on the front or back of which shall be printed all informa¬ 
tion shown in this rule and in the form prescribed, the schedule 
of “reasonable prices’’ to be in accordance with schedule which 
will be furnished any miller. He shall fill out in every such 
invoice covering flour, the flour charge items appearing under 
“Method of calculating invoice price,” and in every invoice cov¬ 
ering feed the feed charge items under such heading. 

The following items shall appear on front or back of every 
invoice: 


REASONABLE PRICE SCHEDULE (Bulk Mill) 



Flour. 

Bran. 

Wheat Mixed 
Feeds. 

Middlings, 
Shorts, Red-dog. 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

(Here insert fig 

ures 

furnished y 

ou by Food Ad 

ministration) 


Soft Wheat Feeds .—The Food Administration will regard as reasonable 
the sale of wheat mill feeds containing not less than 90% soft winter wheat 
at a price not more than $2 in excess of the maximum fair price schedule for 
other wheat mill feeds; provided that all shipments or deliveries of such 
mill feeds are made in packages which are plainly marked ‘‘Manufactured 
from soft winter wheat. ” 

Note. —The schedule of prices indicated above is based upon a determined 
wheat value as indicated by the Government reasonable price guarantee and 
a maximum permissible miller’s charge. Any price in excess of that based 
on the schedules printed in this contract should be reported to the Federal 
Food Administrator for your State. 

(Note. —The following should appear on face of contract) : This contract 
is made subject to terms and conditions printed on back hereof, which terms 
and conditions are binding on both parties to the contract. 

129 




















Maximum Permissible Margins Over Basis on Various Classes of Sales 


Class 
of 

Sale. 

A Anyone 


Mill Sale to: 


G 


B Anyone 


C Wholesale Dealers 


D Wholesale Dealers 


Anyone other than con¬ 
sumer . 

Individual consumers) 
(except bakers and 
public eating places) 
Wholesale feed dealers. 


H Retail feed dealers. 
I All feed dealers.... 


Per Bbl. Per Ton. 

Flour Feed 

.. Carload lots, bulk mill, cash 

attached to B/L. None None 

, .Mixed carloads of feed and 
flour (containing at least 
40% of feeds and / or 
wheat flour substitutes).. .25 .50 

, . From cars or docks, carlots 
(not delivered) where 
flour has been forwarded 

“on consignment ’ 1 .25 

, .From cars or docks, less 
than carload (not de¬ 
livered) where flour has 
been forwarded “on con¬ 
signment’ J .35 

. Less carloads (except Class 
C or D sales) (not de¬ 
livered) .50 

.Less carloads. 1.20 

. Less carloads and 2,000 lbs. 

or over . 1.00 

.Less carloads and 2,000 lbs. 

or over. 2.00 

.Less than one ton. 3.00 


Credit. —Where credit is extended on flour or feed, only the actual interest 
for time of credit extension may be added by the miller on sale of any lot 
of flour or feed. 

Sales of Feed to Consumers must be made at not more than a reasonable 
margin over basis. The Federal Food Administrator of the State where the 
mill or warehouse is located will indicate what margin will be considered 
reasonable. 

Only One Margin Over Carload Basis Permitted. —Not more than one of 
the margins over carload basis, as indicated above, shall be added by the 
wheat miller on the sale of any lot of flour or feed. 


Method of Calculating Invoice Price 


Flour 

Per Bbl. 

Feed 

Per Ton. 

(a) Maximum fair price bulk mill as per Schedule 
No. 



(b) Maximum differential, if any, on sale of 
Class .. 

(c) Freight charge (including freight tax). 

(d) Cost of sacks (98-lb. cotton for flour). 

(e) Package differential (on flour). 

Total. 


130 


































Rule M. S. 23. Change in destination or point of ship¬ 
ment.— The wheat miller in invoicing where change in destina¬ 
tion is made at the request of the buyer and such change results 
in a freight rate other than that specified in the original contract 
shall charge to the buyer any additional freight charge over, and 
credit to the buyer any lesser freight charge under, that speci¬ 
fied in the contract. If the wheat miller makes a change in point 
of shipment from that originally named in the contract such 
change of point of shipment shall not result in change of deliv¬ 
ered cost to buyer. In such case the bulk mill price and freight 
charge shown on the invoice must be identical with similar prices 
and charges shown in the original contract. 

Rule 24. Minimum carloads. —The wheat miller in making 
carload shipments of wheat, wheat flour or wheat mill feed, shall 
load in each car not less than the minimum amounts prescribed 
below except with the special written permission of the United 
States Food Administration, or such higher minimum as may 
be prescribed by published freight tariff, provided that when a 
car of lower carrying capacity is used the maximum load which 
the car will carry may be used without permission. 

Wheat flour and wheat mill feed, 60,000 pounds. 

Wheat, Car capacity. 

Note.—D ouble loading, i . e ., loading for more than one customer in one 
car, is permissible. 

Rule M. S. 25. Bakers must purchase substitutes. —The 
licensee manufacturing wheat flour shall not sell, ship or deliver 
to any person engaged in the business of baking bread or rolls, 
any wheat flour unless the buyer purchases at the same time, or 
the licensee satisfies himself that the buyer has purchased, one 
pound of wheat flour substitutes for every three pounds of wheat 
flour purchased. 

Wheat flour substitutes for the purpose of this rule shall 
include bran, shorts and middlings, corn flour, cornmeal, edible 
corn starch, hominy, corn grits, barley flour, rolled oats, oatmeal, 
rice, rice flour, buckwheat flour, potato flour, sweet potato flour, 
milo, kaffir, and feterita flours and meals, soya bean meal, peanut 
meal, cassava flour, taro flour, banana flour and other products 
of a similar nature which may be used in baking. 

Graham or whole-wheat flour containing 25 per cent, of bran, 
shorts or middlings, and mixed flour containing 25 per cent, of 
substitute flour may be sold to persons engaged in the business 
of baking bread or rolls, without substitutes, but if it contains 
less than 25 per cent, it must only be sold with an amount of 
wheat flour substitutes which, added to the bran, shorts and 
middlings contained in the graham or whole-wheat flour (every - 

131 


thing over 74% extraction), will equal the total amount of sub¬ 
stitutes required. 

Potatoes may be sold to persons engaged in the business of 
baking bread or rolls as a wheat flour substitute in the propor¬ 
tion of four pounds of potatoes in place of one pound of other 
substitutes. 

Rule M. S. 26. Retailers and consumers must purchase 
substitutes. —No licensee manufacturing wheat flour shall, with¬ 
out the permission of the United States Food Administrator, 
ship or deliver such wheat flour to any retailer or consumer 
unless the buyer purchases at the same time, or the licensee satis¬ 
fies himself that the buyer has purchased one pound of wheat 
flour substitutes for every pound of wheat flour purchased, or, 
in the case of whole-wheat or graham flour containing at least 
95 per cent, of the entire wheat, three pounds of wheat flour 
substitutes for every five pounds of such whole-wheat or graham 
flour purchased. 

Wheat flour substitutes for the purpose of this rule shall 
include hominy, corn grits, cornmeal, corn flour, edible corn¬ 
starch, barley flour, rolled oats, oatmeal, rice, rice flour, buck¬ 
wheat flour, potato flour, sweet potato flour, soya bean flour, 
milo, kaffir and feterita flours and meals. 

Rule M. S. 27. Substitutes not to be accepted in return. 
—The wheat miller shall not accept any return of wheat flour sub¬ 
stitutes without the written permission of the United States Food 
Administration. 

Rule M. S. 28. Quantity of wheat flour deliverable.— The 
wheat miller shall not deliver wheat flour to any individual con¬ 
sumer residing in towns or cities in quantities in excess of 
twenty-five pounds, nor to any individual consumer in rural or 
farm communities in quantities in excess of fifty pounds, with¬ 
out the written permission of the United States Food Admin¬ 
istrator. 

Note. Combination sales. —The attention of millers is called 
to the fact that General Rule 23 has been amended so that com¬ 
pulsory sales of wheat flour substitutes with wheat flour will not 
be permitted after September 1, 1918. After that date millers 
cannot refuse to sell flour to retailers on the ground that the 
retailer will not buy wheat flour substitutes from the miller, 
provided that the retailer offers certificate to show that he has 
purchased elsewhere the required amount of substitutes. Com¬ 
pulsory combination sales to wholesalers are already prohibited 
by General Rule 23. 

Note. Size of exchange transactions. —Rules will be issued 
immediately through the several offices of the Federal Food 
Administrators governing the size of exchange transactions. 

132 


Special License Regulations Governing Elevators and Dealers Handling 
Wheat, Rye, Corn, Oats and Barley; Corn, Oats, Rye and Barley Millers; 
Maltsters, and Near-Beer Manufacturers. 

The following special rules were effective July 20th, 1918. 
The above licensees are also subject to the general license reg¬ 
ulations. 

A. Special License Regulations Governing Operators of Elevators, 
Warehouses or Other Places for the Storage of Wheat, Rye, Corn, Oats, 
and Barley, and Dealers in Wheat, Rye, Corn, Oats, and Barley. 

Rules 1 to 3 relate to storage only. 

Rules 4 to 8 relate to dealings in wheat only. 

Rules 9 to 13 relate to dealings in corn, oats, barley and rye. 

Rule 1. Storage space subject to government command. 
—The storage space in all warehouses, elevators, and other plants 
used by licensees for the storage of wheat, rye, corn, oats, barley, 
or any product thereof, shall be at the command of the United 
States Food Administration whenever the United States Food 
Administrator or his duly authorized representative shall deem 
it necessary to utilize such space for governmental purposes, and 
the licensee shall furnish the whole or any part of such storage 
space to the United States Food Administration in such quan¬ 
tity and at such times as the United States Food Administrator 
or his duly authorized representative may determine. 

Rule 2. Storage of wheat limited.— No wheat shall be 
received for or kept in storage by any licensee other than for 
the United States Government or some agency thereof for a 
longer period than 30 days without the consent in writing of 
the United States Food Administrator or his duly authorized 
representative. 

Rule 3. Storage in seaboard elevators limited to 30 days. 
—No licensee operating any elevator, warehouse, or other storage 
place at any seaboard shipping point shall receive for or keep 
in storage any corn, oats, barley, rye, or their derivative prod¬ 
ucts other than for the United States Government or any of its 
agencies for a longer period than 30 days without the consent 
in writing of the United States Food Administrator or his duly 
authorized representative. This rule shall not apply to storage 
at interior points. 

Rules for Dealing in Wheat. 

Rule 4. Wheat not to be sold for feed, exceptions. —The 
licensee shall not, without the consent of the United States Food 
Administrator, sell wheat (except mill feed) for feed or for 
manufacturing or mixing feed; provided, that wheat unfit for 
human consumption may be sold to poultry and pigeon feed 
manufacturers in reasonable amounts to allow a 10 per cent. 


133 


mixture thereof in poultry or pigeon feed, and wheat unfit for 
human consumption and unfit for poultry or pigeon feed may 
be sold for other feeding purposes. 

Rule 5. Wheat under control limited to 30 days’ supply. 
—The licensee dealing in wheat shall not, without the written con¬ 
sent of the United States Food Administrator, or his duly author¬ 
ized representative, keep on hand or have in possession or under 
control by contract or other arrangement at any time any wheat 
or rye in a quantity in excess of the reasonable requirements of 
his business for use or sale by him during a period of 30 days. 

Rule 6. Wheat sold shall not give buyer more than 30 
days’ supply.— The licensee dealing in wheat shall not sell or 
deliver to any person any wheat if the licensee knows or has 
reason to believe that such a sale or delivery will give to such 
person a supply of wheat or rye in excess of his reasonable 
requirements for use or sale by him during the period of 30 
days next succeeding such sale or delivery: Provided, That this 
rule shall not prevent the sale or delivery of wheat to any per¬ 
son for the United States or for the Government of any nation 
at war with Germany. 

Rule 7. Contracts must provide for shipment within 30 
days. —The licensee shall not make or have outstanding at any 
time any contract for the sale of wheat for shipment or delivery 
more than 30 days after the making of such contract, except for 
seeding purposes, provided that this rule shall not apply to con¬ 
tracts with the Government of any nation at war with Germany: 
A7id provided further, That an importer may sell wheat to be 
imported for delivery on arrival. 

Rule 8. Maximum carload shipments. —All carload ship¬ 
ments of wheat shall be made in cars loaded to their capacity 
unless a different minimum is authorized by special written per¬ 
mission of the United States Food Administrator, or his duly 
authorized agent. 

Rules for Dealing in Corn, Oats, Rye, and Barley. 

Rule 9. Grain to be sold at reasonable advance over cost, 
hedging considered.— The licensee shall sell corn, oats, rye, and 
barley at not more than a reasonable advance over the average 
cost of the stock of such commodity on hand or under the con¬ 
trol of the licensee not at that time contracted to be sold. In 
arriving at the cost thereof he shall take into consideration the 
gain or loss from any hedging transaction on any recognized 
grain exchange. 

Rule 10. Amount of unsold grain under control limited 
to 60 days’ supply.— The licensee shall not, without the written 
permission of United States Food Administrator, keep on hand 

134 


or have in possession or under control by contract or other 
arrangement at any time corn, oats, rye, or barley in a quan¬ 
tity in excess of the reasonable requirements of his business 
during the next 60 days. In calculating a 60 days’ supply for 
the purpose of this and the following rule the licensee must 
include all grain bought or contracted to be bought on a grain 
exchange: Provided, That this rule shall not prohibit the stor¬ 
ing of corn, oats, rye, or barley for seeding purposes if notice 
of the amount and location of such seed is sent to the United 
States Food Administrator within 60 days from the date when 
stored. 

Note.—G rain against which the owner holds sales hedges is considered to 
be sold and need not be included in the 60 days f supply. 

Rule 11. Grain sold shall not give buyer more than 60 
days’ supply. —The licensee shall not sell or deliver to any per¬ 
son any corn, oats, rye, or barley if the licensee knows or has 
reason to believe that such a sale or delivery will give to such 
person a supply of such grain not sold or contracted’ to be sold 
in excess of his reasonable requirements for use or sale by him 
during the period of 60 days next succeeding such sale or deliv¬ 
ery: Provided, That this rule shall not apply to the sale or 
delivery of grain to any person for the United States Govern¬ 
ment or for the government of any nation at war with Germany. 

Rule 12. Contracts for corn, oats, rye, and barley must 
provide for shipment in 60 days. —The licensee shall not make 
or have outstanding any contract for the sale of corn, oats, rye, or 
barley for shipment or delivery more than 60 days after the 
making of such contract, except for seeding purposes: Pro¬ 
vided, however, That this rule shall not apply to contracts with 
the United States or with the Government of any nation at war 
with Germany: Provided further, That an importer may sell 
goods to be imported for delivery on arrival. This rule shall not 
affect the validity of any contract for the sale of corn, oats, rye, 
or barley entered into prior to November 15, 1917, unless the 
cancellation of any such contract is hereafter ordered by the 
United States Food Administrator. 

Note.—T his rule does not apply to dealings on any exchange, board of 
trade or similar institutions made by public trading on the floor thereof 
under the supervision of its management, in such ring, pit or other similar 
place as may be especially reserved by the exchange, board of trade or 
similar institution for public trading. 

Rule 13. Minimum for carload shipments. —All carload 
shipments of corn, oats, rye, and barley shall be made in car lots 
loaded to car capacity, unless a different minimum is authorized 
by special written permission of the United States Food Admin¬ 
istrator. 


135 


CORN, OATS, RYE, AND BARLEY MILLERS 

B. Special License Regulations Governing Licensees Engaged in the 
Business of Manufacturing Corn, Oats, Rye, or Barley Products. 


The manufacture and distribution of the following corn, oats, 
rye, and barley products are licensed: 


Barley flour 
Rye flour 
Oatmeal 
Rolled oats 
Hominy 
Corn grits 
Corn meal 
Corn flour 


Starch from corn 
Oat flour 
Cerealine flakes 
Corn oil 
Com sirup 
Glucose 
Corn sugar 


Products and by¬ 
products of shelled 
corn, ear corn, oats, 
rye, and barley for 
use as feed, includ¬ 
ing grain screen¬ 
ings. 


Note. —Any com, oats, or barley millers who resell corn, oats, or barley 
without milling them must have a license to deal in these commodities and 
are subject to rules governing dealers therein. Any corn, oats or barley 
miller buying any products of corn, oats or barley and reselling them must 
have a license to deal therein, and are subject to the rules governing job¬ 
bers in such commodities. 


Rule 1. Amount of corn, oats, rye, barley, and their prod¬ 
ucts under control restricted to 60 DAYS* supply.— The licen¬ 
see shall not, without the written consent of the United States 
Pood Administrator or his duly authorized representative, keep 
on hand or have in possession or under control by contract or 
other arrangement at any time any corn and corn products, oats 
and oat products, rye and rye products or barley and barley 
products in a quantity in,excess of the reasonable requirements 
of his business during the next 60 days : Provided, That this rule 
shall not prevent any licensee from having a carload of any 
commodity in transit in addition to a supply thereof sufficient 
to last until the arrival of said carload. 

Rule 2. Sale of corn, oats, rye, or barley products shall 
not give buyer more than 60 days f supply. —The licensee shall 
not sell or deliver to any person any rye flour, barley flour, oat¬ 
meal, rolled oats, oat flour, corn grits, corn meal, hominy, corri 
flour, starch from corn, cerealine flakes, corn oil, corn sirup, 
glucose, or corn sugar, without the consent of the United States 
Food Administrator if the licensee knows or has reason to believe 
that such a sale or delivery will give to such person a supply of 
any such commodities, not sold or contracted to be sold, in 
excess of his reasonable requirements for use or sale by him dur¬ 
ing the period of 60 days next succeeding such sale or delivery: 
Provided, That this rule shall not affect the sale or delivery of 
any such commodities to any person for the Federal, State, 
county, or municipal governments or for the government of any 

136 


nation at war with Germany, or the sale or delivery of a carload 
of any such commodity to any licensee having not more than 
sufficient on hand to last untii the arrival of said carload. 

Rule 3. Contracts must provide for shipment within 60 
days. —The licensee shall not make or have outstanding at any 
time any contract for the purchase of corn, oats, rye, or barley, 
or the sale of any licensed corn, oats, rye, or barley products or 
by products for shipment or delivery more than 60 days after 
the making of such contract: Provided, however, That this rule 
shall not apply to contracts with the Federal, State, county, or 
municipal governments or to the Government of any nation at 
war with Germany. 

Rule 4. Unreasonable profits prohibited. — The licensee 
shall sell edible products of corn, oats, rye, and barley at not 
more than a reasonable margin over the average cost to him of 
the corn, oats, rye, or barley from which"sucn edible products 
are manufactured. In estimating such average cost, he shall 
include all grain in his possession or under his control by con¬ 
tract or other arrangement, but he shall not include any grain 
which he has contracted to sell or the products of which he has 
contracted to sell. 

Provided, That in determining the cost of such grain he shall— 

(1) Add to the average purchase price the loss, and deduct 
from the average purchase price the gain, resulting from any 
hedging transactions on an established grain exchange in which 
the transaction is finally closed. The loss or gain on such tran¬ 
saction shall be calculated on the average price of all outstand¬ 
ing hedging sales or purchases. 

(2) He shall deduct from the average purchase price the pro¬ 
ceeds from the sale of feed or offal created in the milling opera¬ 
tion, or, if not sold, he shall deduct its current market value. 

Any average once calculated shall be taken as the basis for 
such averaged grain in all subsequent calculations. 

He shall keep records in such manner as to show how all aver¬ 
ages and selling prices have been determined. 

Note. —The Food Administration has determined that any margins in 
excess of those listed below are unreasonable and excessive under the fore¬ 
going rule. These margins may, therefore, be regarded as maximum 
margins, but they do not in any way abrogate or modify the general rule 
that profits must not be excessive. The margins stated are, therefore, not 
necessarily to be considered fair and normal. 

Old-fashioned or water-ground meal , 50 cents per hundred pounds hulk 
product. 

Standard and bolted meal , 50 cents per hundred pounds hulk product. 

Pearl meal, 60 cents per hundred pounds hulk product. 

Pearl or table hominy , 80 cents per hundred pounds hulk product. 

Grits, 80 cents per hundred pounds hulk product. 

Cream meal, 80 cents per hundred pounds bulk product. 

137 


Cerealine flakes, $1.20 per hundred pounds bulk product. 

Corn flakes, $1 per hundred pounds bulk product. 

Other corn meal, 60 cents per hundred pounds bulk product. 

Barley flour, 95 cents per hundred pounds bulk product. 

Bye flour, 90 cents per hundred pounds bulk product. 

Boiled oats, oatmeal, oat flour, 90 cents per hundred pounds bulk product. 

The above differentials apply to prices bulk mill or basing point when 
packed in barrels or 100-pound cotton or jute bags. See rule 7 for differ¬ 
entials on other packages. 

To arrive at the selling price bulk mill or basing point, compute the cost 
of the number of pounds of grain required to produce 100 pounds of 
finished product and deduct therefrom the value of the feed or offal pro¬ 
duced from this number of pounds of grain. The price of the finished 
product should not exceed this figure by more than the above margin. 

Differentials on less than carlot sales. —The following additional margins 
over those named above will be considered reasonable by the Food Admini¬ 
stration on less than carlot sales to others than wholesale dealers: 

Less than carlots to bakers, hotels, retailers, and manufacturers other than 
flour mixtures, not more than 10 per cent of carlot price in sacks. 

Less than carlots to individual consumers, not more than 20 per cent of 
carlot price in sacks. (If this margin is added the 10 per cent margin 
must not be added.) 

Rule 5. Profits on hominy feed.— The licensee shall not sell 
hominy feed, hominy meal, hominy chop, barley feed, rye feed, 
or oat feed produced as a by-product of the manufacture of edi¬ 
ble corn, barley, rye, or oat products, at a price per pound in 
excess of the purchase price per pound of the grain from which 
it is manufactured. 

Rule 6. Uniform contract for certain corn products.— 
The licensee shall not sell corn meal, grits, corn flour, hominy, or 
refined grits in carload lots except spot sales for cash or upon the 
terms contained in the form of contract prescribed below. Dis¬ 
count for cash may be allowed by mutual agreement between the 
parties: Provided, however, That this rule shall not apply to 
sales made to any person for the Federal, State, county, or muni¬ 
cipal governments, or for the government of any nation at war 
with Germany. 

FORM OF CONTRACT REFERRED TO IN RULE 6 

Contract No. .19.... 

.of 


sell and. 

buy the following articles on the terms and conditions stated below: 

Time of shipment... 

Shipment periods to be. 

Routing. Destination. 

Terms: Cash, sight draft, demand draft or arrival draft. 

Discount for cash. 

Bank of. 


138 













No. of 
Packages 

Size. | Kind. 

1 

Brand. 

| Give Rate Basis, Desti- 
Priee (sacksj nation, or Place of 
included). j Delivery. 



















































Buyer. 

Seller. 


TERMS AND CONDITIONS 

(1) Food Administration Regulations. —It is understood and agreed 
that the buyer and seller shall conform to all regulations promulgated by 
the United States Food Administration. 

(2) Net Weights. —'Corn meal, grits and corn flour, corn hominy, flakes 
and refined grits shall be sold upon the basis of net weights when packed 
and the determining factor as to weight shall be a moisture content not in 
excess of Government allowance. 

(3) Contract Not Subject to Change. —It is understood that there are 
no conditions, representations, or warranties, verbal or otherwise, and that 
there shall be no assignment or cancellation of this contract, except as 
herein stated, and no agent or representative has authority to modify the 
printed terms of this contract. 

(4) Shipment Within 60 Days. —It is understood and agreed that the 
above order shall be shipped as specified within 60 calendar days, dating 
from time when order is taken. 

(5) Non-Extension of Time. —'There shall be no extension of time of 
shipment under this contract except as herein specified. 

(6) Buyer’s Non-Fulfillment of Contract. —If the buyer shall refuse to 
accept any shipment as specified hereunder or fail to file with the seller 
specifications with the order for immediate, quick, or prompt shipment or 
within 15 days of time of shipment, if sold for later than prompt ship¬ 
ment or to perform any of the terms of this agreement, then the seller 
may at its option and upon due notice to the buyer cancel this contract, 
and the buyer shall pay to the seller an entry charge of 2 y 2 per cent on 
corn products plus the actual market difference. The seller may pursue 
such other remedies as the law may provide. On the refusal or neglect by 
the buyer to accept any shipment made in compliance with the contract as 
specified hereunder or to perform any of the terms of this agreement, the 
seller may treat such refusal or neglect as a breach of the entire contract 
for which the seller is entitled immediately to avail himself of any rights 
in this contract specified; but, except for reason or reasons specified herein, 
if the shipment as specified is not executed within 60 days from date of 
contract, it shall be canceled and payment of charges above specified shall 
be made by the buyer to the seller. 


139 




















(7) Seller's Non-Fulfillment of Contract. —If the seller shall fail (except 
for reasons herein specified) to make any shipment as specified in accord¬ 
ance with the terms of the contract within the time indicated by this con¬ 
tract, then the buyer may at his option cancel the shipment and in the 
event of such default the seller shall upon demand pay to the buyer entry 
charge of 2 1 /> per cent on corn products plus the actual market difference 
and the buyer may pursue such other remedies as the law provides. 

(8) Exceptions to Seller's Responsibility. —For delay in making ship¬ 
ment as specified, occurring through the fulfillment of Government contracts, 
or through fire, strikes, or labor difficulties, acts of carriers, car supply, or 
similar causes beyond the control of the seller, the seller is not responsible. 

Rule 7. Specifications for hominy, grits, corn meal, corn 

FLOUR, HOMINY FEED, BARLEY FLOUR, AND RYE FLOUR.—On and 

after July 1, 1918, the licensee shall not quote, sell, or label prod¬ 
ucts of corn, rye, or barley under the following designations un¬ 
less the products conform to the specifications indicated there¬ 
under. 

The texture of product shall be determined by sifting with 
hand sieves clothed with the cloth specified, which shall be the 
standard bolting cloths now in use, whether of woven wire, grits 
gauze or bolting silk. 

The analyses of products for moisture, fat, carbohydrates, 
fiber, ash or other quality or content, shall be made by the 
official methods of the American Association of Agricultural 
Chemists. 

Not to exceed 70 pounds of hominy, grits, cream meal, or com 
flour shall be made from 100 pounds of corn. Such corn shall 
be clean and sound, and shall not contain more than 14 y 2 per 
cent, moisture. 

Pearl or table hominy. —Shall be degerminated hulled corn, 
screened or dusted over a No. 10 wire cloth or five sixty-fourths- 
inch perforated metal or equivalent, and shall not contain more 
than 14 per cent, moisture and 1 per cent, fat, by ether extrac¬ 
tion. 

Grits. —Shall be made from hominy or clean, sound corn, 
ground to a granulation fine enough to sift through No. 12 wire 
cloth, and shall be dusted over a No. 28 wire cloth or equivalent, 
and shall contain not more than 14 per cent, moisture and 1 y 2 
per cent, fat by ether extraction. 

Note. —Grits may be made inside these limits of granulation and labeled 
‘ 4 coarse ," il medium ,’' or ‘ ‘ fine ’ ’ according to granulation. 

Cream meal. —Shall be made from hominy or grits, screened 
through No. 22 wire cloth or equivalent and dusted over No. 72 
grits gauze, and shall contain not more than 14 per cent, mois¬ 
ture and iy 2 per cent, fat, by ether extraction, or 12y 2 per cent, 
moisture and 2^4 per cent. fat. 


140 


Corn flour. —This shall be made from hominy, grits, or cream 
meal, and shall be of a texture fine enough so that not less than 
75 per cent, will sift through No. 9 XX bolting silk and balance 
shall sift through No. 72 grits gauze; shall be of an even color 
and shall contain not more than 13% per cent, moisture and 1% 
per cent, fat, by ether extraction, or 12% per cent, moisture and 
2 per cent. fat. No corn flour shall contain more than 2 per cent, 
fat. 

Standard meal. —Shall be made from clean, sound corn with 
approximately 10 per cent, of feed removed and approximately 
45 per cent, of cream meal or grits extracted, and if sold for 
export shall contain not more than 9 per cent, moisture. 

Pearl meal. —Shall be made from clean, sound corn with ap¬ 
proximately 15 per cent, of the bran and germ removed, and 
shall contain not more than 11 per cent, moisture and 3 per cent, 
fat by ether extraction. 

Bolted meal. —Shall be made from clean, sound corn with ap¬ 
proximately 5 per cent, of bran and germ removed, and if sold 
for export shall contain not more than 9 per cent, moisture. 

“Old fashioned,” or “water ground” meal. —Shall be clean, 
sound corn ground to a “soft” meal, and if sold for export shall 
contain not more than 9 per cent, moisture. 

Barley flour. —Shall be milled from clean, sound barley, and 
shall be of a texture fine enough to sift through No. 9 XX bolt¬ 
ing silk; and shall be of a uniform color, and shall contain not 
more than 11% per cent, moisture and 1% per cent, fat, by ether 
extraction; and not more than 55 pounds of barley flour shall be 
made from 100 pounds of clean, sound barley. 

Rye flour. —Shall be milled from clean, sound rye, and shall be 
of a texture fine enough so that not less than 85 per cent, shall 
sift through No. 9 XX bolting silk and balance through No. 8 
XX silk; shall be of a uniform color, and shall not contain more 
than 13% per cent, moisture and 1% per cent, fat, by ether 
extraction; and not more than a total of 70 pounds of white, 
straight or dark rye flour shall be made from 100 pounds of 
clean, sound rye. If this product is separated into patent and 
dark rye flour, not more than 70 per cent, of the extracted flour 
shall be labeled or sold as “patent.” The dark rye flour which 
results shall not be subjected to further separation or division, 
but may contain not to exceed 2% per cent. fat. 

Hominy feed, hominy meal, or hominy chop. —Shall be a kiln- 
dried mixture of the mill run bran coating, the mill run germ, 
with or without a partial extraction of the oil and a part of the 
starchy portion of the corn kernel obtained in the manufacture 
of hominy, hominy grits, and corn meal by the degerminating 
process from clean, sound, white corn; shall contain not to ex- 

141 


ceed 14 per cent, moisture, not to exceed 7 per cent, fiber, not 
less than 10 per cent, protein, not less than 5 per cent, fat, and 
shall be of a texture fine enough to sift through No. 12 wire 
bolting cloth. 

Yellow hominy feed , yellow hominy meal, yellow hominy chop. 
—Shall conform to the specifications of hominy feed, except that 
it shall be made from clean, sound, yellow corn. 

Note to Bule 7. —The moisture content for hominy, grits, cream meal, 
and corn flour has been placed at the outside limit, and is not intended to 
limit contracts expressly providing for a lower moisture content. Exporters 
customarily require one-half per cent lower than the above limitations and 
many domestic buyers also properly demand the lower maximum. The Food 
Administration has fixed the maximum at the higher level with a view to 
protecting the smaller millers with less complete equipment engaged in local 
trade in which durability is not so essential. The larger millers with wider 
distribution should note the advisability of adhering to the lesser maximum 
in protecting their customers and their own trade. Any corn, rye, or barley 
content of any mixed or blended flour must conform with these specifica¬ 
tions. 


Rule 8. Package differentials on corn meal.— The licenses 
shall not sell corn meal, corn grits, hominy, corn flour, barley 
flour, or rye flour, except on the basis of the following differ¬ 
entials : 


Basis 100 pounds cotton or jute bags. 


50 pounds cotton 
25 pounds cotton 
10 pounds cotton 
5 pounds cotton 
50 pounds paper . 
25 pounds paper. 
10 pounds paper 
5 pounds paper. 
3 pounds paper. 


, over basis... 

-do. 

....do. 

....do . 

under basis.. 

.... do. 

over basis. .. 
....do.... 
....do. 


Cents 
Per 100 
Lbs. 
10 
20 
50 
75 
10 
5 
15 
30 
45 


Extra charge for burlapping, baling, or double sacking, 35 cents per 100 
pounds. 


Rule 9. Corn, rye, and barley products must arrive in 
good condition. —The licensee shall ship all corn, barley, and rye 
products in such condition that, except for circumstances beyond 
the control of the shipper, they shall arrive at destination point 
in the United States cool, sweet, and in merchantable condition 
unless there is an express agreement in writing to the contrary. 
Corn meal, grits, hominy, corn flour, barley flour, and rye flour 
intended for human consumption shall not be considered to com¬ 
ply with this rule if they have an acidity exceeding 40 degrees, 
or hominy feed, corn, rye, or barley feeds if they have an acidity 
exceeding 80 degrees. Corn starch shall not be considered to 


142 
















comply with this rule if it contains more than 5/1000 of 1 per 
cent, of sulphur dioxide. 

Rule 10. Uniform packages prescribed.— The licensee shall 
not sell corn meal, corn grits, or hominy after April 1, 1918, or 
corn flour, barley flour, oat flour, rye flour, cerealine flakes, 
starch from corn, bulk rolled oats, or bulk oat meal after October 
1, 1918, for domestic use in the United States, except in packages 
containing 1 pound, 1 y 2 pounds, 2 pounds, 3 pounds, 5 pounds, 
10 pounds, 25 pounds, 50 pounds, or 100 pounds, net weight, 
without special permission in writing from the United States 
Food Administration. 

Rule 11. Minimum for carload shipment. —All carload ship¬ 
ments of barley flour, rye flour, oat flour, oatmeal, rolled oats, 
corn grits, corn meal, hominy, corn flour, starch from corn, cere¬ 
aline flakes, corn oil, corn sirup, glucose, and feeding stuffs shall 
be made in car lots of not less than 60,000 pounds or in the case 
of corn sirup, glucose, or corn starch in barrels in car loaded to 
floor space capacity in tiers on end, unless a different minimum 
is authorized by special written permission of the United States 
Food Administrator: Provided, however, That when cars of 
low T er carrying capacity are used the maximum which the car 
will carry may be used without such permission. 

Special License Regulations Governing Licensees for the Manufacture, 
Storage, and Distribution of Malt. 

Rule 1. Grain malted limited to 70 per cent of year 1917. 
—The total amount of any grain malted by a licensed maltster 
operating a malt house or malt manufacturing plant, shall not 
in the six months’ periods from January 1 to June 30 and July 1 
to December 31 in any year exceed seventy (70) per cent, of the 
amount of such grain malted by such maltster in such malt house 
or malt manufacturing house in the corresponding six months’ 
period in the year 1917, without the written permission of the 
United States Food Administrator. In making the foregoing 
calculation malt actually used in the manufacture of yeast, malt 
extract, malt flour, cereal foods, or vinegar shall not be included, 
and the manufacture of malt for such purposes shall not be sub¬ 
ject to the foregoing limitation. 

Rule 2. Grain produced in 1917 not to be malted after 
july 1, 1918. —The licensee shall not malt any grain produced in 
the year 1917 after July 1, 1918, nor shall he have on hand, in 
possession, or under control any such grain after July 1, 1918. 

Rule 3. Grain and malt under control not to exceed 120 
days’ supply—Exception. —The licensee shall not have on hand, 
in possession, or under control by contract or other arrange- 

143 


ment at any time any greater quantity of grain and the malt 
made therefrom, including grain in process of being malted, than 
shall be equivalent to the output of his malt house or plant dur¬ 
ing a period of 120 days: Provided, That the supply of un¬ 
malted grain under control shall at no time exceed 60 days’ re¬ 
quirements without the consent in writing of the United States 
Food Administrator: Provided, That on July 1, 1918, the total 
amount of malt in the hands of any licensee shall not exceed the 
requirements of his business for the next 90 days. 

Rule 4. Contracts shall require shipment in 120 days.— 
No licensee shall make any contract for the sale of malt except 
such contracts as require shipment or delivery within 120 days 
after the making of such contracts: Provided, That this rule 
shall not apply to contracts with the Federal Government or with 
the Government of any nation at war with Germany or Austria 
or their allies. This rule shall not affect the validity of any con¬ 
tract enforceable at law made in good faith prior to February 
15, 1918. 

Rule 5. Malt not to be delivered without permit except 
to specified classes. —No maltster, malt dealer, or other licensee 
shall sell or deliver any malt, without the written permission of 
the United States Food Administrator, except to persons— 

(a) engaged in the manufacture of malt liquor and hold¬ 
ing license for such purpose issued by the Commis¬ 
sioner of Internal Revenue under the President’s proc¬ 
lamation of December 10, 1917, 

( b ) registered distillers, 

(c) manufacturers of yeast, 

(d) manufacturers of malt extract or malt flour, 

(e) manufacturers of vinegar, 

(/) manufacturers of near-beer holding a United States 
Food Administration license, 

( g ) manufacturers of cereal foods. 

No malt shall be delivered in quantities in excess of the 
amount required to fill the reasonable requirements of the pur¬ 
chaser’s business during the next 60 days, excepting that be¬ 
tween May 1 and August 15 the amount delivered shall not ex¬ 
ceed the reasonable requirements of the purchaser’s business for 
use before October 15 of the current year. No sale of malt made 
through a broker, agent, salesman, or duly authorized represen¬ 
tative shall be made on a brokerage to exceed 2 cents per bushel, 
and no sale shall be made by any maltster, broker, agent, sales¬ 
man, or duly authorized representative for any quantity of malt 
except by signed contract. 


144 


Note. —Special permits for the sale or delivery of malt to any persons, 
except those hereinbefore listed, may be obtained in proper cases from the 
United States Food Administration, Washington, D. U. 

Rule 6. No wheat to be malted.— No maltster shall manu¬ 
facture any malt from wheat. 

Rule 7. No grain to be purchased for malting before Octo¬ 
ber 1 , 1918.—The licensee shall not buy any grain for malting 
or malt any grain before October 1, 1918, nor shall he have on 
hand, in his possession, or under control any grain before that 
date. 

Note. —This rule is effective July 11, 1918. 

There is at the present time an ample supply of malt in the United 
States to take care of all requirements. Before October 1, 1918, the definite 
requirements for the malting industry during the coming year will be ascer¬ 
tained, and a further notice given as to the amount of grain which may 
be malted. 

Special License Regulations Governing Manufacturers of Near-Beer 
and Fermented Beverages Containing Less Than One-Half of 1 Per 
Cent of Alcohol. 

Rule 1. Use of foodstuffs limited to 70 per cent of 1917 
consumption. —The licensee shall not, without the written con¬ 
sent of the United States Food Administrator, use during the 
month of June, 1918, or in any succeeding quarter, in the manu-^ 
facture of malt liquor, near beers, and fermented beverages more 
than 70 per cent, of the amount of foods, fruits, food materials, 
and feeds which he used in such manufactures in the corre¬ 
sponding period in the year 1917. 

Note. —Under the President's proclamation of December 7, and regula¬ 
tions issued thereunder, a similar restriction was imposed upon all manu¬ 
facturers of malt liquor. The present regulation supplements that proclama¬ 
tion and includes as well manufacturers of near beer and fermented beverages 
which do not contain malt. A brewer is permitted to use his allotment of 
70 per cent of what he used last year in the manufacture of beer for the 
purpose of manufacturing near beer, provided his total use of material does 
not exceed the 70 per cent prescribed by this rule. Persons who manufactured 
near beer in 1917, however, cannot use their allotment for that purpose to 
make beer, ale or porter in 1918. 

Rule 2. Material on hand limited to 60 days' supply.— 
The licensee shall not, without the written permission of the 
United States Food Administrator, own or have in his possession, 
or invoiced to him, at any time an amount of food, fruits, food 
materials, or feeds in a quantity in excess of the reasonable re¬ 
quirements of his business for use by him during the next 60 
days. 

Special License Regulations Governing Feeding Stuffs 

Note. —The following license regulations were effective August 1, 1918. 
The following special regulations include all regulations issued up to July 
15, 1918, which affect importers, jobbers, mixers and dealers in feeds or 

145 


feed ingredients, except millers of wheat, rye, corn, oats and barley, cotton¬ 
seed crushers, sugar refiners, and other licensees who manufacture feed as a 
by-product of licensed food commodities for whom other special regulations 
contained in this book are printed. All licensees subject to these regulations 
are also subject to the general license regulations. 

See Presidential proclamation of January 10, 1918, relating to 
aforesaid licenses. Also proclamation May 14, 1918, whereby 
distribution of cottonseed hulls were licensed and the feed deal¬ 
ers handling said products were subject to the following rules. 

A. Special Regulations Applying to all Persons Engaged in the 
Importation, Manufacture, Storing, or Distribution of Feeds or Feed 
Ingredients as Described in the Proclamation of January 10, 1918, 
Excepting Millers of Wheat, Rye, Corn, Oats, and Barley, Cottonseed 
Crushers, Sugar Refiners, and Other Licensees Who Manufacture Feed 
As a By-Product of Licensed Food Commodities. 

Note. —Manufacturers who manufacture feed as a by-product of licensed 
food commodities are governed in respect to such manufacture by the spe¬ 
cial regulation applying to them. Dealers in wheat, rye, corn, oats and barley 
are governed by Special License Regulations above, which differ from the 
following feeding stuffs rules. 

Rule 1. Limitation on stock of food under control. —The 
licensee shall not, without the written consent of the United 
States Food Administrator, or his duly authorized representa¬ 
tive, keep-on hand, or have in possession, or under control by 
contract or other arrangement, at any time any feed ingredients 
or feeding stuffs in a quantity in excess of the reasonable re¬ 
quirements of his business for sale by him during the next sixty 
days. 

Provided , that between May 1 and November 1 he may accumu¬ 
late a total stock not at any time in excess of his reasonable re¬ 
quirements for sale within the next one hundred and twenty 
days. Any stock which is in excess of a sixty days’ supply on 
November 1 shall not be increased after that date, but nothing 
in this rule shall require its reduction to a sixty days’ supply 
until March 1 of the following year. 

Provided, further, that this rule shall not prevent the licensee 
from storing or having under control in sufficient quantity to fill 
his reasonable requirements throughout the period of scant or no 
production any of the following commodities: Molasses in bulk, 
alfalfa meal, dried beet pulp, copra cake or meal, linseed cake or 
meal, milo, baled alfalfa, millet, palm nut meal, palm kernel 
meal, buckwheat and its products, fish scrap, peanut hay meal, 
soya bean meal from imported soya beans, kaffir, feterita, sun¬ 
flower seed, broken wheat mixture, baled straw, baled hay, pea¬ 
nut feed, imported wheat screenings, wild buckwheat, peanut 
meal from imported peanuts. 


146 


Rule 2. Feed sold shall not give purchaser a supply in 
excess of that permitted by rule 1 . —The licensee shall not sell 
or deliver to any person any feed ingredients or feeding stuffs 
without the consent of the United States Food Administrator if 
the licensee knows or has reason to believe that such a sale or 
delivery will give to such person a supply of any such commodi¬ 
ties in excess of his reasonable requirements as permitted to him 
under the preceding special rule 1; provided, that this rule shall 
not prevent the sale or delivery of any feed ingredients or feed¬ 
ing stuffs to any person for the Federal, State, county, or muni¬ 
cipal governments or for the government of any nation at war 
with Germany, or the sale or delivery of a carload the licensee 
having only sufficient of that commodity to last until the arrival 
of such carload. 

Rule 3. Contracts must provide for delivery in 60 days.— 
The licensee shall not make or have outstanding at any time any 
contract for the sale of any feed ingredients or feeding stuffs 
other than those specified in rule 1 for shipment or delivery 
more than 60 days after the making of such contract except for 
seeding purposes; provided, however, that this rule shall not 
apply to contracts with the Federal, State, county, or municipal 
governments or with the government of any nation at war with 
Germany. 

Rule 4. Minimum carload requirements. —All carload ship¬ 
ments of feeding stuffs shall be made in car lots of not less than 
60,000 pounds unless a different minimum is authorized by spe¬ 
cial written permission of the United States Food Administrator; 
provided, however, that when cars of lower carrying capacity 
are used the maximum load which the car will carry may be used 
without such permission. If the car will not hold 60,000 pounds 
it shall be loaded to its full visible capacity. In loading molasses 
feeds in warm weather an air space not to exceed 3 feet from top 
row of sacks to roof of car at lowest point may be allowed to 
insure against heating of feed. 

Rule 5. Storage in seaboard elevators limited to 30 days. 
—No licensee operating any elevator, warehouse, or other storage 
place at any seaboard shipping point shall receive for or keep in 
storage any feeding stuffs listed above, other than for the United 
States Government, or any of its agencies, for a longer period 
than 30 days, or in the case of any such commodity now held in 
storage and which was received in storage on or before November 
1, 1917, for a longer period than 5 days after this rule becomes 
effective, without the consent in writing of the United States 
Food Administrator, or his duly authorized representative. This 
rule shall not apply to the storage of any such commodity at 
interior points. 


147 


Rule 6. Wheat not to be sold for feed. —The licensee shall 
not without the permission of the United States Pood Adminis¬ 
trator sell wheat except mill feed for feeding purposes or use 
wheat in manufacturing or mixing feed; provided, however, that 
poultry or pigeon feed containing not more than 10 per cent, of 
wheat unfit for human consumption may be manufactured and 
sold without such permission; provided, further, that any wheat 
unfit for human consumption and unfit for poultry and pigeon 
feed may be used for other feeding purposes. 

Rule 7. Feed to be sold at reasonable advance over aver¬ 
age cost. —The licensee in any sale of feeding stuffs shall take 
no more than a reasonable profit for such sale over the averag e 
cost of his stock of any commodity on hand or under control not 
at that time contracted to be sold, and in arriving at the cost of 
com or oats he shall take into consideration the gain or loss re¬ 
sulting from any hedging transaction on a grain exchange. 

Note. —This rule does not apply to wheat mill feeds or cottonseed products 
which are dealt with under Special Regulations B and C. 

B. Special Regulations Applying to Wheat Mill Feeds 

Note. —All wheat millers should sell wheat mill feed on a fair price sched¬ 
ule which is based on the Government wheat price, and which is furnished 
to each mill. The rules require that upon request the mill furnish to any 
person a copy of its fair price schedule as prescribed by the United States 
Food Administration. The purchaser is abetting a violation of the milling 
rules if he pays more for feed than is permitted thereby. 

Rule 1. One brokerage not to exceed 25 cents a ton per¬ 
mitted. —No licensee selling wheat mill feed as a broker shall 
charge more than a reasonable brokerage, not to exceed 25 cents 
per ton, and no licensee shall charge a brokerage on any wheat 
mill feed on which a brokerage has already been charged. 

Rule 2. One commission not to exceed 50 cents a ton per¬ 
mitted on consigned feed. —No licensee selling wheat mill feed 
as a commission agent for the sale of consigned wheat mill feeds, 
making sale, delivery, and collection, shall charge more than a 
reasonable commission, not to exceed 50 cents per ton; and no 
licensee shall charge a commission on any wheat mill feed on 
which a commission has already been charged. 

Rule 3. Reasonable margins fixed for jobbers. —No licensee 
buying and selling wheat mill feeds as a wholesaler or jobber 
shall charge more than a reasonable advance over the bulk price 
at mill of the particular wheat mill feed sold (plus freight and 
cost of sacks), such advance not to exceed the following: 

Shipment from mill or in transit, payment cash, demand draft 
or sight draft, $1 per ton. 

Shipment from mill or in transit, sale on arrival draft 
terms, $1.50 per ton. 


148 




Sale ex-jobbers warehouse, payment cash, sight draft or de¬ 
mand draft, $2.50 per ton. 

Sale ex-jobbers warehouse, upon arrival draft terms, $3 per 

ton. 

In making sales on credit not to exceed $1 per ton may be 
added to the margin which could be charged if sold on arrival 
draft terms. 

Rule 4. No resales of wheat mill feeds if total margin 
exceeds that prescribed in rule 3.—No wholesaler or jobber 
shall sell wheat mill feed to any person other than a retail dealer, 
manufacturer, or a consumer; provided, that he may sell to 
another wholesaler or jobber if in making such sales he states to 
the buyer the price which was paid bulk mill for the particular 
wheat mill feeds sold in such case. The buyer shall not sell such 
mill feed at more than the advances specified in rule 3 over the 
bulk mill price of the particular wheat mill feed so purchased 
from another wholesaler or jobber. 

C. Special Regulations Applying to Dealers and Buyers in Cottonseed 
Cake, Cottonseed Meal, Cottonseed Hulls, Peanut Meal, and Soya Bean 
Meal. 

Rule 1. To be sold at reasonable advance over cost of par¬ 
ticular lot sold.— The licensee shall sell the above commodities 
at not more than a reasonable advance over the actual cos t of the 
particular commodity sold, without regard to the market or re¬ 
placement value at the time of sale. 

Note. —Until further notice the United States Food Administration will 
regard any resale of cottonseed meal or cake-by jobbers or wholesalers at 
margins in excess of the following as unreasonable and in violation of the 
foregoing rule: 

Shipment from mill or in transit, payment cash, demand draft or sight 
draft, $1 per ton. 

Shipment from mill or in transit, sale on arrival draft terms, $1.50 per ton. 

Sale ex-jobber’s warehouse, payment cash, sight draft or demand draft, 
where meal or cake is actually handled through the warehouse, $2.50 per ton. 

Sale ex-jobber’s warehouse upon arrival draft terms where meal or cake 
is actually handled through the warehouse, $3 per ton. 

In making sales on credit except to other wholesalers not to exceed $1 
per ton may be added to the margin which could be charged if sold on 
arrival draft terms. 

Rule 2. New crop cottonseed products not to be bought 
or sold before august 1. — The licensee shall not buy or sell cot¬ 
tonseed meal, cottonseed cake, or cottonseed hulls, made or to 
be made from new-crop cotton seed, grown in the United States 
before August 1 of the year in which such cotton seed is grown. 

Note. —Under Special Rule A-3 these products can only be bought or sold 
after August 1 for sixty days ’ delivery. 

Rule 3. Quotations based on protein or fat content.— 

Licensees who base quotations of cottonseed meal or cake upon 

149 




either the protein or fat content, or combination thereof, shall 
not use any range of percentages but shall state that the product 
offered contains not less than a definite percentage. 

D. Special Regulations Applying to Dealers in Hominy Feed 

Rule 1. Specifications for hominy feed. —On and after 
August 1, 1918, the licensee shall not knowingly quote, sell, or 
label products of corn under the following designations unless 
they conform to the following specifications. In cases where the 
licensee after an inspection of the goods has no reason to suspect 
a failure to conform to the specifications, he shall not be held to 
violate this rule if he quotes or sells products under the designa¬ 
tion used by the miller selling to him. 

Hominy feed, hominy meal, or hominy chop. —Shall be a kiln- 
dried mixture of the mill run bran coating, the mill run germ, 
with or without a partial extraction of the oil and a part of the 
starchy portion of the corn kernel obtained in the manufacture 
of hominy, hominy grits, and corn meal by the degerminating 
process from clean sound white corn, shall contain not to exceed 
14 per cent, moisture, not to exceed 7 per cent, fiber, not less than 
10 per cent, protein, not less than 5 per cent, fat, and shall have 
a texture fine enough to sift through No. 12 wire bolting cloth. 

Yellow hominy feed, yellow hominy meal, or yellow hominy 
chop shall conform to the specifications for hominy meal, hominy 
flour, or hominy chop in all respects except that it shall be made 
from clean sound yellow corn instead of white corn. 

Note. — Blackstrap Molasses. — The attention of feed manufacturers is 
called to the fact that refiners of sugar in the United States have been for¬ 
bidden to sell blackstrap molasses in bulk at more than 18 cents per gallon, 
or in barrels at more than 23 cents per gallon. The prices named are f.o.b. 
cars at primary markets or port of entry, or point of production, if carrying 
same freight rate as from primary markets, net cash in 10 days without 
discount, and shall include brokerage and any profit taken by distributors 
in tank cars direct from the refiners, but shall not include freight or tank 
car charges. 

Feed manufacturers should be able to buy blackstrap molasses at the 
above prices in tank cars, paying in addition thereto only the freight and 
tank car charges. An additional margin of 10 per cent is permitted to dealers 
in barrels who handle such barrels through their warehouse. 

The same rules apply to imported blackstrap molasses. 

SPECIAL LICENSE REGULATIONS GOVERNING DEAL¬ 
ERS IN ROUGH RICE; RICE MILLERS AND MANU¬ 
FACTURERS OF RICE FLOUR 

Note. —Effective July 29, 1918. Licensees are also subject to general 
license regulations contained in this book. 

A. Special Regulations Governing Dealers in Rough Rice 

Rule 1. Maximum margin over cost fixed.— The licensee 
shall not sell rough rice, except for seed, at an advance over the 


150 


actual purchase price of the particular rice sold in excess of 1 per 
cent, of such purchase price plus the storage charge, insurance 
and interest on the investment at the rate of 6 per cent, per 
annum. 

Rule 2. Commission merchants' charges limited.— The 
licensee in receiving rough rice on consignment, shall not charge 
a commission of more than one per cent, on any sale of such rice 
to any person except for seed purposes. 

Rule 3. Resales prohibited.— The licensee shall not sell 
rough rice, except for seed, to any person other than a rice 
miller. 

Rule 4. Amount of rough rice under control limited 
to SIXTY days' supply. —The licensee shall not keep on hand, 
or have in possession or under control by contract or other 
arrangement any rough rice except for seed purposes, in a 
quantity in excess of his reasonable requirements during the 
period of sixty days. 

Rule 5. Contracts must provide for shipment within 
sixty days. —The licensee shall not make any contract for rough 
rice for delivery more than sixty days after the making of the 
contract, except for seed. 

Rule 6. Minimum carload shipments. —All carload ship¬ 
ments of rough rice shall be in carloads of not less than sixty 
thousand pounds unless a different minimum is authorized by 
the special written permission of the United States Food Admin¬ 
istrator, provided, however, that when cars of lower carrying 
capacity are used the maximum load which the car will carry 
may be used without such permission. 

B. Special Regulations Governing Rice Millers and Manufacturers of 
Rice Flour. 

Rule 1. Amount of rough rice under control limited to 
sixty days' supply. —No licensee operating any rice mill shall 
keep on hand or have in possession or under control, at any 
time, any greater quantity of rough rice than shall be equiva¬ 
lent to the output of such rice mill during the period of sixty 
days. 

Rule 2. Contract must provide for shipment within 
thirty days. —No licensee shall make or have outstanding, at 
any time, any contract for the sale of clean rice for shipment 
more than thirty days after the making of such contract, pro¬ 
vided, however, that this rule shall not apply to contracts with 
the Federal, State, County or Municipal Governments, or to 
contracts for the sale of brewers’ rice, or to contracts for the 
exporting of rice to foreign countries. 

151 


Rule 3. Clean rice not to be sold at more than reason¬ 
able advance over cost. —Any licensee engaged in the business 
of milling rice shall sell cleaned rice at not more than a reason¬ 
able advance over the cost of such rice without regard to the 
market replacement value at the time of sale. 

Note. — Brokers ’ Commissions. —Brokers will be considered by the Food 
Administration as making an unreasonable and exorbitant charge for nego¬ 
tiating the sale of rice or rice products in any case where the brokerage 
exceeds— 

(a) Seven cents per hundred pounds on carload orders, except brewers > 
rice, sold in the following cities: New York, San Francisco, Charleston, 
Savannah, Jacksonville, Fla., St. Louis, Chicago, Kansas City, Mo., Galves¬ 
ton, Tex., and Houston, Tex. 

(b) Six cents per hundred pounds on any quantity of rice, except brew¬ 
ers ’ rice, sold in New Orleans. 

(c) Eight cents per hundred pounds for carload orders, except brewers’ 
rice, sold at any other point except those designated in (a) and (b). 

(d) Six cents per hundred pounds on brewers’ rice sold at any point and 
in any quantity. 

(e) Twenty-five cents per ton on rice bran or rice polish at any point and 
in any quantity. 

(f) Six cents per hundred pounds on rice flour sold at any point and in 
any quantity. 

Rule 4. Minimum carload shipments. —All carload ship¬ 
ments of rice or rice flour shall be in carlots of not less than 
60,000 pounds, unless a different minimum is authorized by 
special written permission of the United States Food Adminis¬ 
trator, provided, however, that when cars of lower carrying 
capacity are used, the maximum load which the car will carry 
may be used without such permission. 

Note. —This rule in its present form was adopted July 31, 1918. 

Rule 5. Rice flour not to be made from whole rice. —The 
licensee shall not manufacture rice flour from whole rice. 

Rule 6. Specifications for rice flour. —Rice flour shall 
be milled from clean sound rice and shall be of a texture fine 
enough so that 85% shall sift through No. 9 XX bolting silk 
and the balance through No. 8 XX silk, shall be of uniform color 
and shall not contain more than 131/2% moisture and 1%% fat 
by ether extraction. 

Rule 7. Maximum margins governing manufacturers of 
rice flour. —The licensee shall not sell rice flour at an advance 
of more than 75 cents per 100 pounds over the purchase price 
of brewer’s rice or screenings delivered at the mill. 

Rule 8. Uniform contract prescribed. —The licensee shall 
not sell any cleaned rice or rice flour in quantities of twenty- 
five pockets or more except by signed contract in the form pre¬ 
scribed below. The licensee shall not sell rice or rice flour in 


152 


quantities less than twenty-five pockets, unless stipulating that 
the terms of the contract prescribed below shall prevail: 


FORM OF CONTRACT 


Contract No, 


Dated. 

.of 


191.... 


hereby sells and agrees to deliver and.hereby 

purchases and agrees to pay for the following described merchandise on the 
terms and conditions specified below: 



1 

1 

Price (sacks 

No. Packages. 

Kind. 

Brand. 

included). 






Delivery f. o. b. at. 

Time of shipment. 

Shipment periods to be. 

Routing. Destination. 

Terms: Draft, bill of lading attached, seller’s order notify buyer—net 
cash upon arrival and inspection. Discount for cash within ten days of 

draft whether goods arrived or not. 

Bank of... 

The buyer requests seller to take out insurance as follows: 


The buyer and seller agree upon arbitration in the following manner: 


TERMS AND CONDITIONS 

1. Food administration regulations : It is understood and 
agreed that the buyer and seller shall conform to all regulations 
promulgated by the United States Food Administration. 

2. Examination and approval: The buyer shall have no 
right of claim, nor shall he be entitled to arbitration unless claim 
is made or arbitration demanded within three full business days 
after arrival. 

3. Responsibility before and after shipment: All sales 
shall be made F. 0. B. shipping point. The seller agrees to 
deliver the goods free on board cars or steamer in good shipping 
condition. All freight charges, demurrage and expenses, or 
risks that may occur thereafter are for the account of the buyer. 

153 



























Any advance in freight rates over which the seller has no con¬ 
trol from time of signing this contract until date of shipment 
is for the account of the buyer. No liability shall arise here¬ 
under against the shipper for failure to make deliveries due to 
strikes, fires, loss of merchandise in transit, embargoes on freight, 
postponement in sailing of steamers, car shortage, acts of God, 
war, or for any circumstances or accidents beyond the control 
of the shipper. Shipper guarantees full net weight at shipping 
point, but no claim for short weight shall be made where shortage 
does not exceed one-half of one per cent. Seller shall not be 
responsible for delay in delivery due to failure of carriers to 
furnish equipment, or to any other causes beyond its control. 
All contracts made with public carriers, of whatsoever nature, 
for the shipment of the above goods, are made subject to the 
terms of such carrier’s bill of lading. Seller shall have option 
of making delivery F. 0. B. another point than designated, seller 
absorbing any difference in rates either way. 

4. Insurance: The seller shall have the option to insure 
the merchandise sold against all war risks without consulting 
buyer, but at buyer’s expense; and buyer agrees to pay said 
expense in addition to and at the time of payment of the con¬ 
tract price. The seller is authorized, in case merchandise is to 
move by water, to take out Marine insurance at current rates, 
and buyer agrees to pay said expense in addition to and at the 
time of payment of contract price. The seller agrees to take 
out any insurance requested specifically in this contract by the 
buyer at the buyer’s expense, and the buyer agrees to pay said 
expense in addition to and at the time of payment of the con¬ 
tract price. 

5. Arbitration : All disagreements arising under this con¬ 
tract shall be submitted to arbitration in the following manner: 
The parties may agree in the contract upon arbitration by any 
established arbitrating committee, or if no established com¬ 
mittee is agreed upon, arbitration shall be by a committee named 
by the Federal Food Administrator of the State wherein the 
point of destination is located. 

In case of arbitration where the difference in grade does not 
exceed y 4 of 1 cent per pound, the buyer shall accept the goods 
at the allowance. If, however, the difference exceeds y 4 of 1 
cent per pound, the buyer shall have the option to accept the 
goods at the allowance made by the arbitration committee, or 
require that another shipment be made within ten days from 
date of notice to the seller, which notice must be given twenty- 
four hours after the decision is made. All expenses of arbitra¬ 
tion shall be borne by the party against whom the award is 
made, and further, this contract between the buyer and the 

154 


seller is to be the basis upon which each and every arbitration 
is settled. 

6. Deliveries: It is agreed that the above order shall be 
shipped or delivered as specified within thirty calendar days, 
dated from time when contract is accepted. 

7. Contract not subject to change : It is agreed that no 
agent or representative has authority to modify the terms of this 
contract, and there shall be no extension of time of shipment 
under this contract, except as herein stated. 

8. Buyer's non-fulfillment of contract : In case the mer¬ 
chandise is to be delivered or to be paid for in installments, 
the failure of the buyer to pay the first installment of the pur¬ 
chase price promptly when due, shall give the right to the 
seller, at his option, to cancel the contract. 

This contract is made in triplicate, one copy to be retained 
by the buyer, one copy to be retained by the seller’s agent, if 
any, and the other copy to be retained by the seller. 

.(seller) 

By. 

.(buyer) 

By. 

Accepted: 


Rules and Regulations Governing Licensees Engaged in Business as 
Cold Storage Warehousemen 


Special Definitions 

1. Cold Storage Warehouse: 

A cold storage warehouse shall mean any place artificially or 
mechanically cooled to or below a temperature of 45 degrees 
above zero Fahrenheit in which food products are placed and 
held for thirty days or more. 

2. Public Cold Storage Warehousemen: 

Any individual, firm, corporation or association engaged in 
the business of maintaining and operating cold storage ware¬ 
houses in which food products are stored for hire or compensa¬ 
tion, shall be called a public cold storage warehouseman. 

3. Private Cold Storage Warehousemen: 

Any individual, firm, corporation or association that maintains 
and operates as an adjunct to their business, cold storage ware¬ 
houses for the storage of food products exclusively owned or 
dealt in by them, shall be called a private cold storage ware¬ 
houseman. 


155 







4. Combined Public and Private Cold Storage Warehousemen: 

Any individual, firm, corporation or association which com¬ 
bines a public cold storage warehouse business with the storage 
of commodities which directly or indirectly it owns, deals in, or 
otherwise has an interest in shall be called a combined public and 
private .cold storage warehouseman. 

Note. —Lessee or Tenant of Cold Storage Warehouse. 

When a person rents a room or rooms from a cold storage warehouseman 
and the latter has no control over the goods stored therein, the owner of 
the warehouse is not deemed the warehouseman of these goods. The person 
renting the room is the warehouseman of such goods, must be licensed as a 
cold storage warehouseman and must comply with the general and special 
regulations governing cold storage warehousemen. 

Special Rules 

Trading Prohibited: 

Rule 1. (a) No public cold storage warehouseman shall either 
directly or indirectly own or deal in any food commodities stored 
by said public cold storage warehouseman, except food commodi¬ 
ties that are legally acquired for charges or advances made. 

(b) No director, officer, agent or employee of any public cold 
storage warehouseman shall either directly or indirectly own, 
deal in, or otherwise have any interest in any food commodities 
stored by said public cold storage warehouseman, unless such 
director, officer, agent or employee holds a license from the 
United States Food Administration to deal in such food com¬ 
modities, but in no event shall he engage in any unfair, decep¬ 
tive or discriminatory practice. 

(c) No director, officer, agent or employee of any public cold 
storage warehouseman shall directly or indirectly own stock in a 
corporation that owns any food products stored by said public 
cold storage warehouseman unless such corporation holds a 
license from the United States Food Administration to deal in 
such food commodities; but in no event shall he engage in any 
unfair, deceptive or discriminatory practice. 

This rule shall not apply to any farmer, gardener, or other 
person who is a director, officer, agent or employee of the public 
cold storage warehouseman in respect to the products of any 
farm, garden or other land owned, leased or cultivated by him. 

Note. —A cold storage warehouseman does not have to have a wholesaler’s 
or jobber’s license to sell stored goods in order to protect a loan that is 
secured by a lien on said goods. 

Notice of Dual Capacity: 

Rule 2. Licensees who are classified as Combined Public and 
Private Cold Storage Warehousemen shall clearly indicate the 
dual capacity on all warehouse receipts issued. 


156 


Note, —The United States Food Administration has ruled that a cold 
storage warehouseman who classifies himself as a combined public and pri¬ 
vate cold storage warehouseman, and obtains a license as such, thereby 
becoming entitled to own commodities that are stored in his warehouse, must 
be licensed as a dealer. If he deals in any commodities that are licensed 
commodities, he must observe the rules and regulations governing dealers. 

Schedule of Storage Rates: 

Rule 3. Licensees shall submit on blanks to be furnished for 
that purpose a statement or schedule showing present rates and 
charges for storage and other service on each commodity required 
to be licensed, together with all charges for labor, insurance on 
contents of warehouses and whether included in storage rate, 
cartage, if any, and whether included in storage rate, interest 
and all other charges not enumerated. 

Note. —General Rule 5 prohibits cold storage licensees from making un¬ 
reasonable or discriminatory charges in handling or storing food com¬ 
modities. 

The United States Food Administration recognizes the principle that up 
to a certain point it ordinarily costs less per unit to handle large quantities 
than to handle small quantities, and large lots than small lots, of a par¬ 
ticular commodity, and has no objection to licensees charging a lesser rate 
per unit for large quantities or lots than for small quantities or lots if the 
differentiation in rates is based on variation of cost in handling the par¬ 
ticular commodity. 

Hereafter the above-mentioned principle must be applied by Cold Storage 
Warehousemen in arranging any variations in rates or discounts for quantity 
contained in schedules of rates or amendments thereto that are filed. 

With respect to rate schedules now on file in which lower rates for large 
lots or discounts for quantity are stated, no objection has been or will be 
made to differentiations in rates unless they are obviously merely arbitrary 
or discriminatory or in effect constitute a preference to one or a few 
patrons, or unless upon investigation they are found to be without reason¬ 
able justification. 

All rates must of course be contained in the schedule required to be filed 
with the United States Food Administration and must be clear, explicit, well 
defined, and intelligible. Every patron is entitled to know his exact classi¬ 
fication and the specific rate he is to be charged. 

Attention is called to General Rule 5, which prohibits licensees from 
making unjust, exorbitant, unreasonable, discriminatory or unfair storage 
charges. 

The fact that a licensee files with the Food Administration his schedule 
of rates and charges under Special Rule 3, supra, does not mean that the 
rates and charges in such schedule have the approval of the Food Adminis¬ 
tration. If the Food Administration at any time has reason to believe that 
any such rates or charges are unjust, unfair, exorbitant, unreasonable or 
discriminatory, the licensee will be called upon to justify such rates or 
charges. 

Uniform Rates—Change in Rate Must Be Filed Thirty Days: 

Rule 4. The licensee shall not demand, collect, or receive, 
directly or indirectly, from any patron or other person concerned 
any different sum for storage or other services performed than 


157 


that shown on the schedule filed with the United States Food 
Administration, or make any charge for services or special allow¬ 
ance or rebate not shown on said schedule, unless he has filed 
with the United States Food Administration at least thirty days 
before the change in rate or charge becomes effective an amend¬ 
ment to the schedule showing such change in rate or charge. 

Note. —Under the foregoing Rule 4 Governing Cold Storage Warehouse¬ 
men, which provides that the licensee must not charge rates other than 
those that are included in his schedule of rates filed with the United States 
Food Administration, a licensee is prohibited from storing licensed food 
commodities at rates fixed by contract or other arrangement that differ 
from those specified in the filed schedule; when amendments to any schedule 
are filed the new rates become effective thirty days after filing and at such 
time storing at the rates superseded by the amendments must cease, any 
arrangement or agreement to the contrary notwithstanding. 

Illustrative Case: The Smith Cold Storage Warehouse Company, prior 
to the enactment of the Food Control Law and the promulgation of the 
present rules and regulations thereunder governing cold storage warehouse¬ 
men, entered into a long-time contract with the Jones Company, at a rate 
different than that rate which has now been filed with the Food Adminis¬ 
tration in its schedule, as required under the rules, supra. The question is 
whether this contract is now superseded by the schedule of rates filed with 
the Administration, or whether the contract remains in existence notwith¬ 
standing a different rate filed, and whether the change, if any, would have 
the effect of impairing the constitutional right of contract. 

Answer: Special Rule 4, supra, is not directed towards cancellation of 
contracts. It provides that a licensee shall not store commodities at a 
rate other than that shown in its filed schedule. This rule, and the law 
under , which authority it was promulgated, is a war measure, and will no 
longer be effective after the existing state of war between the United 
States and Germany is terminated, and the fact has been proclaimed by the 
President. Therefore, during the war the rates of the warehouseman, as 
they appear in its filed schedules, should prevail. During the time they are 
operative, contracts calling for rates other than those prescribed by the 
rates filed under this war measure, would be void, as being in violation of 
the rules and regulations. 

Loan Margins: 

Rule 5. The licensee in making loans, either directly or indi¬ 
rectly, to patrons or other persons concerned, or commodities 
required to be licensed, or who shall become liable on notes cover¬ 
ing such loans by indorsement, guarantee or otherwise, shall 
limit the amount of such loans, including all advance charges, to 
a maximum of 70 per cent of the market value of the said com¬ 
modity on the date of the said loan. A margin of not less than 
30 per cent on all such loans and advance charges shall be main¬ 
tained at all times. 

PROVIDED THAT this rule shall not affect the validity of 
any loan actually made before November 1, 1917. 

Note.—A combined public and private <iold storage warehouseman who 
sells on credit food commodities required to be licensed, and transfers title 


158 


thereto and who thereafter stores such commodities which remain security 
for the unpaid portion of the purchase price, is, by extending credit in 
such a transaction, indirectly making a loan on such commodities within 
the meaning of special Rule 5 governing licensees engaged in business as 
cold storage warehousemen, and he must not extend credit for more than 
70 per cent of the market value of such commodities. A margin of 30 per 
cent must be maintained at all times, as provided by the Rule. See General 
Rule 27, infra. 

A cold storage warehouseman in releasing or delivering out any licensed 
commodities on which such loans as are mentioned in the rule have been 
made, shall, if such release or delivery would result in the margin on 
the loan being decreased to less than 30 per cent, require and obtain 
before or at the time such release or delivery is made, a sufficient payment 
so that the amount of the loan is reduced and the required margin of at 
least 30 per cent is at all times preserved. 

Illustrative Case: What are to be considered as items of advances or 
charges within the meaning of the rule supra? 

Answer: An advanced charge may arise through the payment of money 
by the warehouseman to some third person, or the assumption of an 
indebtedness by the warehouseman, with reference to the goods upon which 
the loan is based. For example, a charge for insurance, freight, cartage or 
prior storage, which the warehouseman has paid, or assumed to pay, is an 
advance charge and must be included in estimating the amount of the loan 
permitted by this rule. On the other hand, the indebtedness to the ware¬ 
houseman making the loan for storage charges on the goods, for interest 
on the loan, or any other item which does not represent an advance by the 
warehouseman to or for the customer, w r ith reference to the goods stored, is 
not an advance charge and need not be included in estimating the amount 
of the loan permitted by this rule. 

Branding: 

Rule 6. (a) Every public cold storage warehouseman, private 
cold storage warehouseman, or combined public and private cold 
storage warehouseman, who after November 1, 1917, shall keep 
in any cold storage warehouse any fresh meat, fresh meat pro¬ 
ducts, fresh fish, poultry, eggs or butter that were received before 
November 1, 1917, shall plainly mark, stamp or tag, either upon 
the container wherein said foodstuffs are packed, or upon the 
article itself, the words “Cold Storage/’ before the same are 
delivered out of the cold storage warehouse. 

(b) No public cold storage warehouseman, or combined public 
and private cold storage warehouseman shall, on or after Novem¬ 
ber 1, 1917, place or store in any cold storage warehouse any of 
the foodstuffs mentioned above, unless plainly marked, stamped 
or tagged, either upon the container wherein packed, or upon 
the article of food itself, with the words “Cold Storage/’ with 
the name of the cold storage warehouse and the State wherein 
located; with the date when placed therein and with the date 
delivered therefrom. 

(c) Every private cold storage warehouseman who, aft<*r 
November 1, 1917, receives in any private cold storage warehouse 
any of the foodstuffs mentioned above, shall mark them with the 


159 


date of their receipt if they are intended to be held less than 
thirty days. If they are held thirty days or more, they shall be 
marked with all the data prescribed in (b) above before being 
delivered out of the cold storage warehouse. 

Note. —Subdivision (c) of Special Rule 6 governing cold storage ■ware¬ 
housemen applies to a combined public and private cold storage warehouse¬ 
man in respect to commodities which the public and private cold storage ware¬ 
houseman directly or indirectly owns, deals in, or otherwise has an interest in 
as a private cold storage warehouseman. Special Kule 6, subdivision (c) 
supra, governing cold storage warehousemen, has reference to food com¬ 
modities kept in cold storage thirty days or more. 

The time during which food commodities, such as butter, are in the process 
of manufacture is not to be included in calculating the time in which such 
commodities are or have been kept in cold storage. 

(d) The required markings shall be placed on each article or 
container that is offered separately for storage, provided, that 
when articles of the designated foodstuffs not in containers are 
stored in bulk, for example, in stacks or piles, and it is found im¬ 
practicable to mark each article, then the required marking may 
be made upon a placard upon or adjacent to the bulk mass of arti¬ 
cles. When such articles are removed from cold storage, they 
shall immediately be placed in appropriate containers, which shall 
be marked as above required. Said markings must be plainly legi¬ 
ble and in letters and figures not less than three-eights of an inch 
in height, and the ink used must be of a permanent character. 
Recognized abbreviations only will be accepted. 

(e) No licensee shall remove or erase or permit to be removed 
or erased, any mark, stamp or tag provided for in this rule. 

(f) When any of the specified food products are transferred 
from one container to another, all the data required herein to be 
placed on the original container shall be placed on the container 
to which the food products are transferred. 

Illustrative Case: The X. Y. Poultry Company places poultry in public 
cold storage warehouse for the purpose of chilling, where it is held for thirty 
days. Would it be necessary for the public cold storage warehouse to 
mark the words “Cold Storage’’ on the poultry that has been frozen for 
the X. Y. Company? 

Answer: It would be necessary to comply with requirements of Sub¬ 
division B of Rule 6, supra, governing cold storage warehousemen. This 
rule applies to goods placed in a public cold storage warehouse to be 
chilled. The goods must not only bear the “In” and “Out” date, but 
also the words “Cold Storage” and the names of the cold storage ware¬ 
house, and the state in which the cold storage warehouse is located. It is 
true, however, that if the X. Y. Company leased a room in a cold storage 
warehouse, and in such room did not store the goods for thirty days, and if 
the control of the goods stored therein is kept by the X. Y. Company, and 
it performs all the work and labor in connection with handling the goods, 
etc., no markings would be required to be placed on the goods. In such 
circumstances the rented or leased part of the warehouse would not be a 
cold storage warehouse within the definition of a cold storage warehouse 

160 


under these regulations. It would not be a place in which food products 
were stored for thirty days or longer. If, under such circumstances, the 
goods were stored for thirty days, then the X. Y. Company would be a 
private cold storage warehouseman, and in the case of goods that were 
removed within thirty days, it would be necessary to put on the “In” date, 
as prescribed in Rule 6, Subdivision C. The public cold storage warehouse¬ 
man, in such circumstances, would not be considered a licensee, as he would 
have no control over the goods placed in such room. If the goods were 
held, as above suggested, by the owner, for a period of thirty days or 
more, it would be necessary for the X. Y. Company to be licensed, inasmuch 
as it would in such case be a private cold storage warehouse. 

Illustrative Case: The A. B. Packing Company has a number of 
branch houses at which it held licensed food commodities thirty days or 
more, at a temperature of less than 45 degrees above zero Fahrenheit. 
There was no intention on its part to hold the goods for a longer period 
than thirty days. In fact, it was intended to remove the same prior to that 
time, but because of inability to dispose of same on the market, it was 
necessary to hold a few days longer. Is it necessary that this concern, in 
such circumstances, be licensed? This same company also carries certain 
quantities of sausage material in cold storage, which material is accumu¬ 
lated during certain periods of plenty and is carried forward to a period 
of scarcity. The material is then made up into sausage. Would it be nec¬ 
essary to brand this product in accordance with Rule 6, supra? 

Answer: Every branch of this concern which holds licensed food com¬ 
modities, for the time and in the circumstances mentioned above, would be 
required to have a license as a cold storage warehouse. The intention as 
to the time when goods are to be held is immaterial. The regulations 
prescribe the time and the temperature during which the goods are held 
as constituting a cold storage warehouse, arid when these facts appear, a 
license is required. The matter of intention of holding goods thirty days 
or more when put in cold storage is immaterial. In reference to the sec¬ 
ond question, goods which are held in process of manufacture are not 
believed to be within the meaning of the rule above, and it would not appear 
to be necessary to comply with the provisions contained in this rule. 

Tainted and Unwholesome Goods Must Not Be Stored or Kept in 
Storage: 

Rule 7. The licensee shall not receive for storage or keep in 
any cold storage warehouse any food products which are appar¬ 
ently diseased, tainted or otherwise unfit for human consumption. 

Note. —The foregoing rules are all the rules governing warehousemen 
issued up to the time of this publication. 

The following Rule, originally contained in General Rules, is 
still in effect and requires licensee storing commodities to file 
certificate showing their market value, upon request of ware¬ 
houseman. 

Statement Filed With Warehouseman Upon Request: 

Rule 27. (Effective February 7, 1918.) The licensee storing 
with a cold storage warehouseman commodities required to be 
licensed upon which the warehouseman either directly or indi¬ 
rectly loans money, shall upon request of such warehouseman file 

161 


with him a certificate stating the market value of the goods 
stored and shall make no false or misleading statement in such 
certificate, nor shall he fail to maintain the margin required on 
all loans by Special Rule 5, governing licensees engaged in busi¬ 
ness as cold storage warehousemen. 

Special Regulations Governing Manufacturers, Dealers, Brokers and 
Commission Merchants in All Kinds of Cheese. 

Rule 1. Cheese To Be Sold at Reasonable Advance Over 
Cost— The licensee dealing in cheese shall sell cheese without re¬ 
gard to market or replacement value at not more than a reasonable 
advance over the cost of the particular cheese sold ; provided, that 
the licensee may average by weight, the cost of all cheese of the 
same kind, shape and grade which have not already been con¬ 
tracted to be sold. The licensee shall keep a record of the manner 
in which such average has been determined. When new lots are 
added and a new average calculated the licensee shall include in 
the new averaging all stock remaining on hand of lots already 
averaged at the average cost of such lots previously determined. 
If the cost of any cheese is averaged the cost of all cheese must 
be averaged. 

Cost for the purpose of this rule shall include: 

1. Purchase price. 

2. Transportation charges, if any. 

3. Storage charges actually incurred, provided that the cheese 
has been in storage more than sixty days. 

4. Insurance charges actually incurred, provided that the 
cheese has been in storage more than sixty days. 

5. Interest on money invested at the current rate, provided 
that the cheese has been in storage more than sixty days. 

6. Actual cost of paraffining, if any, not to exceed one-fourth 
cent per pound. 

Note to Items 2, 3 and 6 of Cost, Supra. —Drayage is not to be con¬ 
sidered a part of the transportation charge to be included as an element of 
cost, but is a part of the licensee’s expenses which, like overhead expense*, 
are covered by selling margins. 

In any case where a licensee owns his own storage warehouse in which 
cheese owned by him is stored more than thirty days, he may include in his 
calculation of cost a charge for warehousing equal to that ordinarily paid 
to a public warehouse for similar services. Where cheese is carried in a 
private warehouse without refrigeration, refrigeration rates must not be 
charged. 

The dealer must calculate the actual cost of paraffining and will not be 
permitted arbitrarily to take one-quarter cent per pound as this cost. In 
cases where the cheese is reweighed after paraffining the increased weight 
must be taken into consideration in determining the cost. 

Cost shall not include any allowance for shrinkage in weight, 

162 


commissions, expenses of breaking packages and repacking, or 
any other expenses than those herein listed. 

Note. — Reports to be furnished on demand. The licensee must be pre¬ 
pared to furnish to the United States Food Administration or to the 
Federal Food Administrator of his State upon demand a full report on 
costs and margins charged or on the maximum prices charged in any given 
period for any kind of cheese, or any other informaiton which may be con¬ 
sidered necessary for the purpose of this rule. 

The maximum margins indicated by the Food Administration are not to 
be regarded as fair normal margins or as so recognized by the Food Admin¬ 
istration. They are intended only to prevent speculation and are purposely 
made wide enough to cover cases where the methods of doing business are 
more expensive, to the extent that such methods are justified. These 
maximum advances must not be exceeded in selling any lot of cheese and 
the prices charged by any dealer must not in any case be more than sufficient 
to return to him a reasonable profit on his investment. 

Dealers are expected to continue their business under competitive con¬ 
ditions and at normal margins. The maximum margins indicated are in¬ 
tended to prevent speculation and excessive profits when markets are 
advancing. 

Licensees will be expected to sell cheese in usual quantities to customers, 
and where it appears that sales are being made in smaller quantities than 
customarily for the purpose of charging larger margins than would be 
allowed on larger sales, such larger margins will not be considered jus¬ 
tifiable. Larger margins are only proper for sales of smaller quantities 
where selling in small quantities is the usual course of business, involving 
a greater expense. 

Sales from branch houses. Where cheese is transferred by any dealer to 
a branch house of such dealer in the same or another city, such transfer 
shall not be considered a sale governed by the maximum margins indicated 
for sales. No advance over cost for such transfer will be allowed except 
where the main house actually handles the cheese, in which case advances 
over cost for transfer not greater than those indicated below will be per¬ 
mitted, provided the transaction is in as direct a line of distribution as 
practicable; and the branch house may figure the transfer price (see below) 
as its purchase price and may sell cheese at an advance over cost on such 
basis not greater than the maximum margins indicated below. If the 
branch house transfers the cheese to another branch house of the same dealer, 
the total margin added by both branch houses must not be greater than the 
maximum margins indicated below. 

Collusive sales. Any sale by a dealer to another dealer at a price higher 
than the price which the second dealer would have to pay in buying on the 
open market will be considered evidence of a collusive sale intended to 
defeat the purpose of Rule 1 by increasing the purchaser’s cost and the 
price which he may charge upon a rising market. 

Cost in the case of purchases of ungraded cheese. The cost of any grade 
of cheese must be figured on the purchase price of that grade. Where a 
dealer purchases ungraded cheese at one price per pound, regardless of the 
grades contained in the lot, he must not figure the purchase price per pound 
of any part of this cheese higher than the price per pound actually paid for 
the entire lot. 

The growing practice due to present market conditions of buying cheese, 
particularly round Swiss, from the factory before it is sufficiently matured 
to permit of the determination of the quality of the product increases 
materially the speculative risk assumed by the buyer. It also results in 
lowering the standard of quality. The Food Administration is strongly of 

163 


the opinion that this tendency should be stopped as uneconomical and 
believes that the installation of grades will do much to stabilize values in 
this product. Where dealers sell on grade they can reduce their speculative 
risk if they do not purchase the cheese until its quality can be reasonably 
determined. The above requirement as to figuring costs is intended to 
accomplish this result. 

Maximum Margins. 

The Food Administration will consider the sale of any cheese 
of any of the following kinds by any dealer other than the man¬ 
ufacturer or the retailer at an advance over cost as hereinbefore 
defined of more than the following margins, as prima facie evi¬ 
dence of a violation of the Food Control Act and the above rule. 

Where a licensee contracts to sell a quantity of cheese to be 
delivered in smaller quantities at future dates the dealer must 
be guided by the maximum margins indicated for sales of the 
quantity contracted to be sold and not for sales of the amount 
of any delivery. 

American or Cheddar Cheese. 

(a) 3 / 4 c per pound on car lot sales. 

(b) 114 c per pound on sales less than a car lot but amount¬ 
ing to 7,000 pounds or more. 

(c) l%c per pound on sales less than 7,000 pounds but 
amounting to 4,000 pounds or more. 

(d) 2y 2 c, per pound on sales less than 4,000 pounds, but 
amounting to 1,000 pounds or more. 

(e) 3c per pound on sales less than 1,000 pounds, but amount¬ 
ing to 100 pounds or more. 

(f) 3^c per pound on sales less than 100 pounds. 

Where American or Cheddar cheese is held in a warehouse for 
more than thirty days, an additional margin not to exceed one- 
eighth cent per pound per month may be added for each and 
every month after the thirty day period during which the cheese 
is held in the warehouse by any licensee—but in no case shall 
the amount so added exceed one cent per pound and no further 
amount shall be added by any licensee after nine months from 
the date of original storage. 

Transfer Margins. The margins for transfer of American or 
Cheddar cheese to a branch house where the main house actually 
handles the cheese shall not exceed one-half cent per pound 
regardless of the quantity. 

Round or Tub Swiss Cheese. 

(a) l%c per pound on car lot sales, 

(b) 2i^c per pound on sales less than a car lot, but amount¬ 
ing to 6,000 pounds or more. 


164 


(c) Sy 2 c per pound on sales less than 6,000 pounds, but 
amounting to 3,000 pounds or more. 

(d) 4c per pound on sales less than 3,000 pounds but 
amounting to one tub or more. 

(e) 5c per pound on sales less than one tub but amount¬ 
ing to 120 pounds or more. 

(f) 8c per pound on sales less than 120 pounds. 

Where round or tub Swiss cheese is held in a warehouse for 

more than thirty days an additional margin not to exceed one- 
fourth cent per pound per month may be added for each and 
every month after the thirty day period during which the cheese 
is held in the warehouse by any licensee but in no case shall the 
amount so added exceed two cents per pound and no further 
amount shall be added by any licensee after nine months from 
date of original storage. 

Transfer Margins. The margins for transfer of round or tub 
Swiss cheese to a branch house where the main house actually 
handles the cheese shall not exceed one cent per pound regardless 
of quantity. 

Block Swiss Cheese. 

(a) lc per pound on car lot sales. 

(b) 13/ 8 c per pound on sales less than a car lot, but amount¬ 
ing to 8,000 pounds or more. 

(c) 2c per pound on sales less than 8,000 pounds, but 
amounting to 1,500 pounds or more. 

(d) 2y 2 c per pound on sales less than 1,500 pounds, but 
amounting to 750 pounds or more. 

(e) 3c per pound on sales less than 750 pounds but amount¬ 
ing to 150 pounds or more. 

(f) 4i/ 2 c per pound on sales less than 150 pounds. 

Where block Swiss cheese is held in a warehouse for more than 
thirty days, an additional margin not to exceed one-fourth cent 
per pound per month may be added for each and every month 
after the thirty day period during which the cheese is held in the 
warehouse by any licensee—but in no case shall the amount so 
added exceed two cents per pound and no further amount shall 
be added by any licensee after none months from the date of 
original storage. 

Transfer Margins. The margins for transfer of block Swiss 
cheese to a branch house where the main house actually handles 
the cheese shall not exceed three-fourths cent per pound regard¬ 
less of quantity. 

Brick, Limburger and Munster Cheese. 

(a) li/ 4 c per pound on car lot sales. 

165 


(e) 3c per pound on sales less than 750 pounds but amount¬ 
ing to 6,000 pounds or more. 

(c) 2%c per pound on sales less than 6,000 pounds, but 

amounting to 2,400 pounds or more. 

(d) 3c per pound on sales less than 2,400 pounds, but 

amounting to 600 pounds or more. 

(e) 3%c per pound in sales less than 600 pounds, but 

amounting to 120 pounds or more. 

(f) 5c per pound on sales less than 120 pounds. 

Where Brick, Limburger or Munster cheese is held in a ware¬ 
house for more than thirty days, an additional margin not to 
exceed three-eights cent per pound for the first month after the 
thirty day period and one-fourth cent per pound per month for 
each of the following months thereafter during which the cheese 
is held in the warehouse by any licensee—but in no case shall the 
amount so added exceed one and three-eighths cents per pound 
and no further amount shall be added by any licensee after six 
months from the date of original storage. 

Transfer Margins. The margins for transfer of Brick, Lim¬ 
burger or Munster cheese to a branch house where the main house 
actually handles the cheese shall not exceed three-fourths cent 
per pound regardless of quantity. 

Rule 2. Manufacturers who perform services of dealer 
or assembler— Any manufacturer who acts also as an assembler, 
wholesaler or jobber, shall be subject in such sales to the rules 
and margins governing assemblers, wholesalers and jobbers, 
provided that instead of the purchase price as an assembler, 
wholesaler or jobber he shall either 

(1) Compute the cost of raw materials and the expense of 
manufacture, or 

(2) In the case of American or Cheddar cheese, take the price 
during the ten days after the cheese is manufactured on the shape 
and grade of cheese in the established primary market on the 
basis of which the cheese is usually sold by manufacturers. 

Note.—I n Special Kule 2, supra, the words “ten days after the cheese 
is manufactured ’' shall be considered to mean ten days after the cheese is 
removed from the hoops and placed in the curing room. 

Rule 3. Commissions not to be unreasonable— No licensee 
shall pay, and no commission merchant shall receive, an unreas¬ 
onable or exorbitant commission in connection with the sales of 
cheese. 

The licensee shall inform any commission merchant selling 
cheese for him of the maximum permitted price at w T hich such 
cheese may be sold. 


166 


Note. bmler , Kule 1 tlx* selling price may not be increased by reason of 
th a iPayTUfl l lt .J>I,, a- commission. Commissions Tfiiglier tliaii tTi6se 5mlicateil 
below will be consider eel prima facie, unreasonable and exorbitant. 

(a) Maximum Commissions. Tn the case of American or Cheddar Cheese 
one-half cent per pound on car lots and one cent per pound on less than 
car lots. 

(b) In the case of Round or Tub Swiss Cheese one and one-fourth cents 
per pound on car lots and one and three-fourth cents per pound on less than 
car lots. 

(c) In the case of Block Swiss Cheese one cent per pound on car lots 
and one and one-half cents per pound on less than car lots. 

(d) In the ease of Brick, Limburger and Munster Cheese one cent per 
pound on car lots and one and one-half cents per pound on less than car lots. 

It should be understood that the above are maximum commissions which 
may at times be in excess of reasonable commissions. 

Rule 4. Intertrading restricted —The licensee in selling 
cheese shall keep it moving to the consumer in as direct a line 
as practicable and without unreasonable delay. The direct line 
of distribution of cheese is from a licensee in any of the follow¬ 
ing classes to a licensee in any succeding class. 

Class 1: Manufacturers. 

Class 2: Assemblers, wholesalers and jobbers, including all 
licensees who receive cheese from manufacturers and grade and 
assemble cheese for sale, or who distribute it in any way except 
at retail, and all manufacturers who perform the services custo- 
„ marily performed by an assembler, wholesaler or jobber. 

Class 3: Retailers, hotels, restaurants and institutions. 

Note. —Any transactions that savor of dealing in which a profit accrues 
to the dealer without corresponding service are clear violations of the rule 
and will subject the offender to revocation of his license and to such other 
penalty as the law provides. 

The following kinds of sales between dealers will be considered justifiable, 
but sales other than those described between dealers in the same class will 
bo considered as prima facie evidence of violation of the rule. 

(a) A sale by any dealer in cheese to a dealer in any succeeding class 
will be considered as in the direct line of distribution. 

(b) One sale and only one sale of the same cheese between dealers in 
Class 2 in the same city will be considered justifiable when necessary to 
supply the reasonable requirements of the buyer’s business, without the 
special consent of the local Federal Food Administrator; provided, however, 
that a second sale of the same cheese between dealers in Class 2 in the same 
city will be permitted without the consent of the local Federal Food Admin¬ 
istrator if this sale is made at an advance over costs of not more than one 
half of the margin indicated above, and provided that the seller notifies the 
buyer that this is a second sale. 

(c) In addition to such sales as are otherwise indicated as justifiable, 
sales between dealers in Class 2 in different cities will be considered justi¬ 
fiable, provided, that an actual delivery of the cheese follows the sale, and 
that the shipment is for the purpose of obtaining supplies from primary 
markets for the reasonable requirements of the purchaser’s business; pro¬ 
vided, further, that not more than three such sales are made of any lot of 
cheese without special permission. 


167 




(d) Any sale between dealers without any advance over cost will be 
considered as justifiable in addition to such other sales as are permitted. 

Rule 5. The licensee making a second sale in tiie same 
class to notify buyer— The licensee in Class 2, as defined in 
Rule 4, who purchases cheese from another assembler or dealer in 
such class or from a manufacturer performing the services of an 
assembler or dealer and who sells to another dealer in Class 2, 
shall notify such dealer of the prior sale and of all other prior 
sales of such cheese within that class of which he has knowledge. 

Note. —This information should be disclosed at the time of the transac¬ 
tion and should be placed by the seller upon the invoice in order that there 
shall be a permanent record. 

When Rules Were Effective; Carload Shipments. 

The foregoing regulations were promulgated August 2, 1918, and super¬ 
sede all other special regulations governing manufacturers, dealers, brokers, 
and commission merchants in cheese. All licensees are also subject to the 
general rules and regulations, and also to the rule that all carload ship¬ 
ments of the commodities should be made in carload lots of not less than 
30,000 pounds, unless a different minimum is authorized by special written 
permission of the United States Food Administration, provided, however, 
that when cars of lower carrying capacity are used that the minimum load 
which the car will carry may be used without special permission. 

BUYING OF UNGRADED CHEESE 

The foregoing provisions, it will be noted, discourage the buying of 
ungraded cheese. Under these regulations a dealer who buys ungraded 
cheese can sell no part of the lot at a higher price than the price paid per 
pound for the entire lot, plus certain specified margins. This, therefore, 
makes the buying of cheese before it is matured sufficiently to indicate the 
quality, a risky proposition. 

Illustrative Cases: Where American cheese, for example, is held on 
a warehouse for more than thirty (30) days, is the additional margin 
permitted in the foregoing rules, of not to exceed one-eighth ( 14 ) cent per 
pound per month for every month, provided in no case that it shall not 
exceed one cent per pound, an additional margin to the maximum margin 
allowed and specified? 

Answer: The margin for storage allowed is in addition to the maxi¬ 
mum margins of profit permitted on sales of cheese. 

Can a dealer in cheese quote a price on the cheese before he purchases 
the- same? 

Answer: The regulations prescribe a reasonable advance over the cost 
of the particular cheese sold. He cannot, under this rule, sell in advance 
cheese which he has not purchased or contracted to purchase. 

How long may a dealer carry cheese in cold storage? 

Answer: Section 6 of the Food Control Law defines hoarding as car¬ 
rying in storage a quantity of product in excess of the reasonable require¬ 
ments for use or consumption by the storer. A dealer in cheese, therefore, 
would not be permitted to carry a quanity of cheese in excess of that 
amount necessary to meet his reasonable requirements during the period 
of scant or no production, without, however, the written consent of the 
United States Food Administration. Therefore, cheese that was made 
during the last production season should be marketed before the next pro¬ 
duction season. It has been held heretofore, however, by the Food Adminis- 

168 


tration, that cheese was somewhat different from other perishables in that, 
in the majority of eases, there is no detrimental effect in holding cheese 
for a reasonable length of time in cold storage. However, it is, of course, 
necessary that all holders of cheese, if held beyond the period of scant or 
no production, should first apply to the Federal Food Administration for 
permission to carry cheese beyond that period. 

Special Rules and Regulations Governing the Following: 

1. Wholesalers, retailers and all other dealers in 
age eggs, 

2. Wholesalers, retailers, and all other dealers 
poultry. 

37~Manufacturers, dealers, brokers and commission 
in butter. 

4. Wholesalers, retailers and all other dealers in fresh poultry 
and eggs. 

Note. —Commission Merchants : We pointed out in connection with 
our discussion of the importance of distinguishing between consignments to 
a Buyer and to a Factor in reference to the special regulations governing 
dealers, etc., in nonperishable commodities. We refer you to these state¬ 
ments, which are equally applicable to the special regulations above referred 
to. There seems to be much confusion in the trade as to the proper inter¬ 
pretation of these transactions. In some instances, transactions are treated 
as being handled by wholesalers, whereas it is strictly a commission trans¬ 
action. We quote below from a decision recently rendered by the Food 
Administration wherein it was brought out in the facta in the case that the 
parties had failed to distinguish between acting as a broker and buying 
outright. The defendants in this case first claimed they were acting as 
wholesalers, doing business on a net basis. They then claimed that they 
purchased the eggs from complainant, admitting, however, that they charged 
him a commission on the sale to themselves. It was held under the facts 
that the defendants undoubtedly intended to act as commission merchants, 
and that their so-called selling charge was, in fact, a commission, and that 
they were, in such circumstances, subject to all of the rules and regulations 
regulating commission merchants. The Board stated in part as follows: 

“It is clear that defendants either acted as commission men or whole¬ 
salers. If they were commission men they were bound to take out a license 
under the New York State Law, and also a United States Food Administra¬ 
tion license. If they were wholesalers, they must have bought the egg» 
from complainant and were bound to pay him the market price for them. 
The practice of selling eggs and poultry by the method of “net sales’ ’ 
seems to be not uncommon in the New York market. It grew up from 
competitive eagerness to get business, and at first was accompanied by a 
guarantee by the commission man that the goods would bring a fixed price 
at least. If the commission man guessed wrong he paid the difference to 
the shipper between the guaranteed price and the market price, usually out 
of his commission, unless the market went off very badly, when the loss 
might be larger than the commissions. In other words, to attract shipments 
he gambled on the market. The shipper was satisfied, as he gave him a 
certainty for an uncertainty. Of late the feature of a guaranteed price 
has been abandoned and the commission man has charged for his services, 
deducting the amount from the sale price, and remitting the balance or “net 
sale” to the shipper. This practice enabled the commission man to make 
sales without complying with the New York State law* requiring commission 

169 


cold stor- 
in frozen 
merchants 


men to take out licenses and give a bond. Aside from the question of 
evasion of the New York State law, there is nothing objectionable in the 
practice, providing the shipper agrees to it, and a return is made to him 
of the true market price, the price received, and the amount charged for 
services, which must be reasonable. 

“The testimony brought out in this case, however, shows the several 
avenues for fraud through which the practice might lead. The commission 
man might buy in on his own account, if the market rose, and refuse to do so 
if it fell; he might not be active to obtain the best market price, and he 
might fix arbitrarily the charge for his services, without the knowledge 
on the part of the shipper of the amount of the charge. The temptation to 
do all or some of these things is too great to make the practice a good one. 

‘ ‘ This case has given the United States Food Administration the oppor¬ 
tunity of correcting a trade abuse which was far more important than the 
smaller question of the penalty to be inflicted upon defendants. They were 
not fair to their shipper, but at the same time we recognize that the method 
they adopted had been indulged in by others in the trade, but not neces¬ 
sarily with wrongful results to the shipper. For the method used we do 
not wish to make them an example, while others did the same. On the 
other hand, for failure to make proper returns to shipper they should make 
restitution. We think from their correspondence with the shipper that he 
was justified in regarding them as wholesalers, and expecting from them the 
market rate without commissions. 

“The complainant is entitled to receive the sum of $378.45, being the 
difference between the prevailing market price of eggs when the same were 
received by defendants and the amount returned by them to the complainant, 
which they are directed to pay. ’ ’ 

Under the present rules of the Food Administration, consignments of 
butter, poultry and eggs can be handled by consignees only as agents for 
the shippers or as buyers for the shipper. In the case of where they are 
handled as commission merchants, an account sales must be rendered to 
the buyer showing the price which the goods sold for, and all proper deduc¬ 
tions, including charge for services, etc. Therefore, an accounting cannot 
be made until the consignment is sold, unless part or all of the goods are 
taken over to their own account and the price at which they are taken over 
allowed to the shipper. In order, of course, to take the goods over to your 
ow r n account, you must have specific authority from the seller to do so. It 
is, therefore, important that in case you handle goods as commission mer¬ 
chants that you secure proper authority from the shipper to handle the 
transaction in the way intended. It is, therefore, suggested that the con¬ 
signee secure from the shipper written authority, and the following forms 
are suggested for this purpose: 

Form 1 . I hereby request that you handle, as a Buyer, all consignments 
of butter, poultry and eggs wdiich I may make to you, and that you render 
me a memorandum of purchase and sale at the best price you are able to 
secure for same on the day of receipt. The price paid must be reasonable, 
taking into consideration all the circumstances. 

Form 2. I hereby request that you handle, as Commission Merchants, all 
consignments made by me to you. That you make proper accounting there¬ 
for in accordance with all law and rules and regulations in reference thereto. 
I further hereby authorize you to take to your own account any part of 
any consignments made to you at their current market value, less commission. 

Form 3. I hereby request you to handle consignments made by me to 
you without proper agreement as to price, as a buyer, upon such relation to 
current marke tquotations as may, from time to time, be agreed upon. 

Commission merchants, brokers, or auctioneers in butter , 
poultry and eggs are subject to the following special regulations, 

170 


as well as to special regulations relating to their particular busi¬ 
ness, and also the general regulations. 

Charges. 

Rule 1 . The licensee shall not charge directly or indirectly a 
commission or brokerage on the sale of food commodities in excess 
of that which ordinarily and customarily prevails, under normal 
conditions in the locality in which the broker’s, commission mer¬ 
chant or auctioneer’s business is conducted, and in the particular 
branch of trade in question. 

Accounting. 

Rule 2. The licensee shall remit promptly following the sale 
of food commodities received on consignment for sale or distribu¬ 
tion, and shall render to the consignor an account showing the 
true sales and with charges only for services actually performed 
and expenses actually incurred by the licensee. 

Note.— ... A commission merchant cannot divide his commission 
with the buyer unless he shows such on the account sales rendered to the 
consignor. 

Commissions. 

Rule 3. The licensee shall not charge or receive for himself, 
on the sale of any food commodities, both a commission or brok¬ 
erage and an overage or profit except as provided in Rule 4 fol¬ 
lowing. 

Account Sales Must Disclose Facts. 

Rule 4. The licensee shall not directly or indirectly sell con¬ 
signed food commodities, or food commodities with the sale of 
which on commission he is entrusted, to himself or to anyone con¬ 
nected with his business, unless he notes the facts of such trans¬ 
action on the account of sales. 

Consignments on a “Net Return Basis”. 

A dealer in handling poultry, butter or eggs on a “net return 
basis” must render an account sales which must include the 
actual selling price and the sum deducted for compensation by 
the dealer. If the dealer buys for his own account, he must state 
that fact on his account sales. Rendering an account sales which 
includes only the “net return” is a violation of Special Rule 
2 supra. 

The use of the expression “net return basis” by a dealer to 
describe transactions in which he does not act as the shipper’s 
agent, but takes to his own account goods which are shipped to 
him, is deceptive. In such cases the consignor and the consignee 

171 



must have a clear agreement prior to the transaction, that the 
goods are to be purchased by the consignee, and the use of the 
term ‘‘net return basis” in connection therewith will be con¬ 
sidered an unfair practice. 

Note.—G uaranty of sales at definite prices. 

Where a commission merchant receives a consignment of poultry or eggs 
and guarantees to the consignor a definite selling price, he must show on 
the account sales the actual price at which the goods are sold, together 
with services actually performed and expenses actually incurred, and as a 
separate item must show any sum paid to the consignor by reason of the 
commission merchant*s contract of guaranty. Failure to do this will be con¬ 
sidered a violation of Special Rule 2, supra, governing commission mer¬ 
chants and also a misstatement of the price at which commodities are being 
sold in violation of General Rule 19. 

Illustrative Case: Suppose a merchant buys on account without any pre¬ 
vious agreement as to price. Is he in such case an agent for the shipper? 

Answer: It is our opinion that a merchant who buys on account with¬ 
out any previous agreement as to price is acting for the shipper as 
much as if he sold to a third party. In either case, an account sales con¬ 
taining the proper information for the shipper should be given. See rules 
above relating to commission merchants. 

Marking Products Held in Cold Storage for Thirty Days or Longer. 

Note. —The following rules originally contained in General Rules are 
applicable to sales of Pcndtry, Butter and Eggs. 

Rule 24. No licensee shall sell or offer for sale fresh meat, 
fresh meat products, fresh or frozen fish, poultry, eggs or butter 
which have been held for a period of thirty days or over in a 
cold storage warehouse unless such commodities are plainly 
marked, stamped or tagged, either upon the container wherein 
packed, or upon the article of food itself with the words “Cold 
Storage.” The licensee shall keep such mark, stamp or tag in 
plain view, and shall not represent or advertise as fresh any such 
commodities; and if he is a retailer, shall display a placard 
plainly and conspicuously marked “Cold Storage Goods” on 
the bulk mass or articles of food. Any invoice or bill rendered 
for such goods shall clearly describe the commodities, using the 
words ‘ ‘ Cold Storage Goods. ’ 9 

Rule 25. No licensee shall remove or erase or permit to be 
removed or erased any mark, stamp or tag bearing the words 
‘ ‘ Cold Storage ’ 9 or other words required by these Rules and Reg¬ 
ulations to be placed on any food commodities or upon the con¬ 
tainers wherein they are packed. When any food commodities 
are transferred from a container bearing the words ‘ ‘ Cold Stor¬ 
age,” or such food commodities are divided into smaller lots or 
units, the words “Cold Storage” shall be plainly and conspicu¬ 
ously marked upon the containers, cartons, packages or wrappers 
to which they are transferred. 


172 


Minimum Carloads—Butter, Eggs and Poultry. 

During the period between June 1 and September 15, 1918, 
licensees are permitted to make car load shipments of dressed 
poultry and eggs or mixed cars of butter, eggs and poultry in 
car lots of not less than 20,000 pounds; 24,000 pounds is the 
amount specified for the remainder of the year. 

Provided, that when cars of lower carrying capacity are used, 
the maximum load which the car will carry may be used without 
permission from the Food Administration. 

1. Special Rules and Regulations Governing Wholesalers, Retailers, 
and All Other Dealers in Cold Storage Eggs. 

Definitions. 

In the following rules the different kinds of dealers in cold 
storage eggs are defined as follows: 

a. An original packer or shipper is a person, firm, corporation 
or association that assembles and packs the eggs for market or 
storage. 

b. A commission merchant is a person, firm, corporation or 
association that solicits for sale or receives for sale, and sells 
food products on a commission basis, or that acts as agent or 
representative of shippers, packers and other distributors in the 
marketing of food products for a fixed package charge or on a 
percentage basis. 

c. A wholesaler is a person, firm, corporation or association 
other than the original packer or shipper that sells to jobbers or 
to suppliers of hotels and institutions. 

d. A jobber is a person, firm, corporation or association that 
sells or distributes to retailers. 

e. A supplier of hotels and institutions is a person, firm, cor¬ 
poration or association that sells to hotels, restaurants, clubs, 
dining car or steamship companies, public or private institutions, 
or to retail dealers requiring specially selected stock and being 
furnished a service similar to that rendered to hotels and institu¬ 
tions. 

f. A retailer is a person, firm, corporation or association that 
sells or distributes to consumers. 

Wherever in the following rules dealers in cold storage eggs 
are limited in the advance over cost at which such eggs may be 
sold, “cost” shall be construed to include the purchase price, or 
in the case of the original packer or shipper the cost into storage, 
plus storage charges, interest on the goods in storage, and insur¬ 
ance on goods in storage incurred by the seller up to the time of 
sale, but not to include any other expenses, except as hereinafter 
provided in the case of candled eggs. 

173 


Averaging: In determining cost in compliance with the Special 
Regulations Governing Wholesalers, Retailers and All Other 
Dealers in Cold Storage Eggs, licensees may average the cost of 
all lots of cold storage eggs of the same grade which were orig¬ 
inally stored in the same month and which have not already been 
contracted to be sold, and may take such average cost as the cost 
of any particular lot. The licensee must keep a record of the 
manner in which such average has been arrived at and shall 
take as the cost of all stock remaining on hand from lots already 
averaged, the average cost previously arrived at. If the cost 
of any cold storage eggs is averaged the cost of all cold storage 
eggs must be averaged. 

The maximum advances over cost specified in the following 
rules are not to 'be regarded as normal or so recognized by the 
Food Administration. They are intended only to prevent specu¬ 
lation, and are purposely made wide to cover cases where the 
methods of doing business are more expensive, to the extent that 
such methods are justified. These maximum advances must not 
be exceeded in selling any specified lot of eggs and the average 
advance over cost charged by any dealer must not be more than 
sufficient to return to him a reasonable profit on his investment 
in accordance with General Rule 5, which is as follows: “The 
licensee shall not import, manufacture, store, distribute, sell or 
otherwise handle any food commodities on an unjust, exorbitant, 
unreasonable, discriminatory or unfair commission, profit or 
storage charge. 7 ’ 

Illustrative Case: Is a jobber permitted under the definition of 
Cost supra to add to his permitted margin of profit, storage 
charges, interest and insurance ? 

Answer: Under a strict interpretation of the definition he is 
not permitted to add these items. The rule it is noted is stated in 
the disjunctive. Cost to all dealers except original storers or 
shipper includes only purchase price. The original storer or 
shipper is permitted to add these items. 

Buyer Cannot Add to Maximum Advance. 

Where a dealer in the sale of cold storage eggs adds less than 
the maximum advance over cost permitted by the rules, the 
buyer is not because of this fact permitted to add to the maxi¬ 
mum advance over cost allowed to him any part of the maximum 
advance allowed to the seller which the seller did not add. 

Rules and Regulations. 

Rule 1 . No licensee shall knowingly purchase cold storage 
eggs from a dealer who sells at a greater advance’over cost than 
the maximum specified in the following rules. 


174 


Maximum Per Cent of Profit Allowed Original Packer or Shipper. 

Rule 2. The original packer or shipper, storing in a cold stor¬ 
age warehouse shall not sell cold storage eggs to wholesalers at 
an advance of more than 6 per cent over cost. In case cold stor¬ 
age eggs are stored in the name of a commission merchant, the 
original storer shall be deemed to be the consignor for whom the 
commission merchant acts as agent. An additional advance not 
exceeding 4 per cent of cost may be charged by the original 
packer or shipper in selling to jobbers or suppliers of hotels and 
institutions. An additional advance may be charged in selling 
to retailers, not exceeding 5 per cent of cost if sold at mark (i. e., 
in original packages), and not exceeding 10 per cent of cost in 
selling candled eggs (cost in figuring this 10 per cent to be calcu¬ 
lated as prescribed in Rule 5). An additional advance not exceed¬ 
ing 12 per eent of cost may be charged if the original packer 
performs the functions of a supplier of hotels and institutions, 
as heretofore defined. 

Note. —Who is the original storer? 

The dealer who owns eggs when first placed in a cold storage warehouse 
is the original storer. 

If a dealer buys eggs within thirty (30) days from the date of original 
storage from the dealer who owned the eggs when first placed in storage, 
the maximum advance over cost allowed to the buyer in selling as a whole¬ 
saler, jobber, etc., may be increased by all or any part of six per cent over 
the first storer ; s cost not added by the first storer. The first storer who sells 
within thirty (30) days must inform the buyer what portion of six per cent 
over his cost he has added. 

If before eggs are placed in a cold storage warehouse, a definite lot 
thereof is sold, and if title to this lot actually passes to the purchaser and 
thereafter the eggs are put in the warehouse, the purchaser is the original 
storer even though the eggs are carried and insured in the seller’s name. 

In similar cases the dealer who purchases before storage begins will not 
be prevented from becoming the original storer by the fact that the seller 
retains legal title, provided title is retained merely as security for the pay¬ 
ment of the purchase price. 

Note. —Maximum margins governing original packers and wholesalers. 

Some misunderstanding has arisen with regard to the question of maximum 
margins governing original shippers and packers of cold storage eggs and 
wholesalers who are original storers of cold storage eggs. The rules have 
been amended in order to make the matter more clear. 

Where the original packer or shipper sells to a wholesaler he must not 
sell at an advance of more than 6 per cent over cost. If the original packer 
sells to a jobber or to a supplier of hotels or institutions he must not sell 
at more than fi per cent over cost plus 4 per cent over cost. 

A wholesaler who is an original storer in making a justifiable sale to 
another wholesaler must not sell at more than 6 per eent over cost and must 
not sell to a jobber or to a supplier of hotels and institutions at an advance 
of more than 6 per cent over cost plus 4 per cent over cost. 

The purpose of the regulations is to provide that the cold storage eggs 
shall reach the jobber at an advance of. not more than 10' per cent over the 
original storer ’s cost. Specific limitations are made in the case of sales 
between dealers in the same class. The attention of the licensee is directed 


175 


to the requirement that both buyer and shipper disclose and note on the 
invoice the capacity in which they are dealing in order that it may be clear 
to both parties just how the special regulations apply to the transactions. 

Services Performed. In determining whether the transaction involved is 
a sale by a wholesaler, jobber or supplier of institutions it is necessary to 
take into consideration all the facts. The criterion is the nature of the 
services performed. For example, sales in smaller quantities than usually 
and customarily made in wholesale trade will be a jobbing transaction, 
assuming the party held himself out as a jobber and regularly conducted 
such business. 

Maximum Commission to Commission Merchant. 

Rule 3. A commission merchant shall not receive a commis¬ 
sion of more than 4 per cent on cold storage eggs consigned to 
him by shippers or packers. If a commission merchant acts as an 
agent for dealers other than shippers or packers for the distribu¬ 
tion of surplus stocks the selling price shall not exceed the maxi¬ 
mum advance over cost to the consignor permitted to such con¬ 
signor by the following rules, which advance shall include the 
commission for such sale. A commission merchant who takes to 
account consigned cold storage eggs shall not receive any other 
profit beyond the amount of the commission before specified. 

A commission merchant shall require from consignors a state¬ 
ment of cost of goods and maximum selling price allowable 
under these rules. 

Wholesaler, Maximum Profit. 

Rule 4. A wholesaler shall not sell cold storage eggs at an 
advance of more than 4 per cent over cost. If a wholesaler aso 
sells as a jobber, he shall not sell at an advance of more than 
10 per cent over cost as provided for jobbers in Rules 5 and 6. 
The above maximum advance may be increased by not to exceed 
the 6 per cent of cost specified in Rule 2, in cases where the 
wholesaler is also the original storer in a cold storage warehouse. 

Note. —If a dealer who is licensed to do business both as a wholesaler and 
a jobber purchases eggs from an original packer or shipper and resells to 
another wholesaler he will be considered a wholesaler in so far as the rules 
restricting resales in the same trade are concerned. 

Jobber, Maximum Profit. 

Rule 5. A jobber shall not sell cold storage eggs at mark 
(i. e., in original package) at an advance of more than 5 per cent 
over cost. 

In selling candled eggs as provided in Rules 6, 7 and 8, the 
actual net candling loss may be included in the cost but the 
expense of labor and materials in candling and all repacking 
expenses shall not be so included. 

Rule 6. A jobber shall not sell candled eggs at an advance of 
more than 10 per cent over cost. The maximum advance pre- 

176 


scribed in Rules 5 and 6 may be increased by not to exceed the 
6 per cent of cost specified in Rule 2, in cases where the jobber 
is also the original storer in a cold storage warehouse. 

Supplier of Hotels and Institutions. 

Rule 7. A supplier of hotels and institutions shall not sell 
candled and selected eggs at more than 12 per cent over cost. 
This maximum advance may be increased by not to exceed the 
6 per cent of cost specified in Rule 2, in cases where the supplier 
of hotels and institutions is also the original storer in a cold 
storage warehouse. 

Retailer. 

Rule 8. A retailer who is a licensee shall not sell candled and 
selected eggs at an advance of more than 15 per cent over cost. 
This maximum advance may be increased by not to exceed the 
6 per cent of cost specified in Rule 2, in cases where the retailer 
is also the original storer in a cold storage warehouse. 

Direct Line of Distribution. 

Rule 9. A sale by any dealer in cold storage eggs in any of 
the classes indicated below to a dealer in any succeeding class 
shall be considered to be in the direct line of distribution: 

Class 1. Original packers and shippers. 

Class 2. Commission merchants—wholesalers. 

Class 3. Jobbers—suppliers of hotels and institutions. 

Class 4. Retailers—hotels and institutions. 

Resales. 

Rule 10. All trading in cold storage eggs shall serve to move 
the cold storage eggs in the direct line of distribution to the con- 
umer, and nothing contained in this or the preceding rule shall 
authorize any licensee to use any more indirect method of distri¬ 
bution than he has been accustomed to use in the past in the dis¬ 
tribution of eggs. One sale of any lot of cold storage eggs between 
dealers in the same class may be made where necessary to supply 
the reasonable requirements of the buyer ’s business, provided a 
report is made promptly to the local Federal Food Administra¬ 
tor. Such sales shall be made at an advance of not more than 
4 per cent over cost except when sold by the original storer who 
shall sell at not more than 6 per cent over cost. If sold by a 
commission merchant to a wholesaler the commission shall not 
exceed 4 per cent. 

Except for such sales no licensee shall sell to another in the 
same or any preceding cass of distribution without the written 
consent of the local Federal Food Administrator, which will be 

177 


given only in extraordinary circumstances. Where such consent 
is given the dealer shall not sell at an advance of more than 10 
cents per case over cost, nor in the case of a commission merchant 
selling to a wholesaler shall the commission amount to more than 
10 cents per case. Provided, however, that nothing in this rule 
shall prevent sales at cost. Provided, further, that nothing in 
this rule shall prevent sales for immediate delivery from one 
city to another for actual distribution to relieve exceptional local 
shortage, but a report of any such sale must be promptly made 
to the local Federal Food Administrator, with the reasons there¬ 
for. Such sales shall be made at a price not to exceed 4 per cent 
over cost, or if sold by a commission merchant to a wholesaler 
the commission shall not exceed 4 per cent; and provided, further, 
that nothing in the rule shall prevent a commission merchant 
from acting as an agent for dealers other than original shippers 
and packers, as provided in Rule 3. 

Note. — Intertrading. When a wholesaler buys fresh eggs from another 
wholesaler and places these eggs in cold storage the buyer then becomes 
subject to the rules regarding intertrading in cold storage eggs, and unless 
the eggs are sold and removed from storage within thirty days (in which 
case they are considered as fresh eggs) the prior resale in the same trade 
of the fresh eggs will not be considered as affecting the question whether 
a resale of the cold storage eggs is allowable. 

Under the rules restricting intertrading between dealers of the same class, 
the buyer will not be considered responsible for taking part in a transaction 
which would have been permissible under the rules except for prior resales 
of which he had no knowledge. However, the buyer must not close his eyes 
to facts which are clearly apparent. 

Rule 11. If brokers act as agents in any sale of cold storage 
eggs under these rules brokerage paid shall not be added to the 
selling price of the goods. 

Note to Rules 1 to 11.—Licensees should remember that General Rule 
13, governing all licensees, provides that the licensee may store eggs “in 
sufficient quantities to fill his reasonable requirements throughout the period 
of scant or no production, 7 ’ and that under this rule eggs must in no case 
be kept in storage beyond March 1st. 

Licensees engaged in business as cold storage warehousemen will be re¬ 
quired to provide necessary information. Dealers will be required to make 
special monthly storage reports giving the necessary -data covering trans¬ 
actions in cold storage eggs in accordance with the foregoing rules. 

The foregoing rules and regulations were originally promul¬ 
gated on the 2nd day of March, 1918, and amended in their pres¬ 
ent form July 26, 1918. The licensees are also subject to general 
license regulations. 

Dealers in Frozen, Desiccated and Powdered Eggs Suitable for Human 
Consumption. 

The carrying in storage of frozen, desiccated or powdered eggs 
suitable for human consumption, which were stored on or before 


178 


September 1, 1917, for more than twelve months from the date 
of such storing constitutes a violation of Section 6 of the Food 
Control Act, which prohibits hoarding. However, in order to 
provide for an equitable distribution of such eggs to the con¬ 
sumer, the Food Administration is informing all dealers that no 
action will be recommended by the Food Administration pro¬ 
vided these eggs are withdrawn from storage as promptly as pos¬ 
sible under trade conditions; provided, further, that special 
reports are made to the United States Food Administration each 
month beginning September 1, 1918, showing the quantity with¬ 
drawn and sold the preceding month, together with the name 
and address of the buyer; and, provided further, that all such 
eggs are withdrawn from storage by January 1, 1919. 

Special reports are to be forwarded to Food Administration, 
Washington, D. C., September 1, October 1, November 1, Decem¬ 
ber 1, 1918, and December 31, 1918. 

2. Special Rules and Regulations Governing Wholesalers, Retailers, 
and All Other Dealers in Frozen Poultry. 

Definitions. 

In the following rules the different kinds of dealers in frozen 
poultry are defined as follows: 

a. An original packer or shipper is a person, firm, corporation 
or association that assembles and packs the poultry for market 
or storage. 

b. A commission merchant is a person, firm, corporation or 
association that solicits for sale or receives for sale, and sells 
food products on a commission basis, or that acts as agent or 
representative of shippers, packers and other distributors in the 
marketing of food products for a fixed package charge or on a 
percentage basis. 

c. A wholesaler is a person, firm, corporation or association 
other than the original packer or shipper that sells to jobbers 
or to suppliers of hotels and institutions. 

d. A jobber is a person, firm, corporation or association that 
sells or distributes to retailers. 

e. A supplier of hotels and institutions is a person, firm, cor¬ 
poration or association that sells to hotels, restaurants, clubs, 
dining car or steamship companies, public or private institutions, 
or to retail dealers requiring specially selected stock and being 
furnished a service similar to that rendered to hotels and insti¬ 
tutions. 

f. A retailer is a person, firm, corporation or association that 
sells or distributes to consumers. 

Wherever in the following rules dealers in frozen poultry are 
limited in the advance over cost at which such poultry may be 


179 


sold, “cost” shall be construed to include the purchase price, 
or in the case of the original packer or shipper the cost into 
storage, plus storage charges, interest on the goods in storage, 
and insurance on goods in storage incurred by the seller up to 
the time of sale, but not to include ony other expenses. 

Averaging. 

In determining cost in compliance with the Special Regula¬ 
tions Governing Wholesalers, Retailers and All Other Dealers 
in Frozen Poultry, licensees may average the cost of all 
lots of frozen poultry of the same kind and grade which have not 
already been contracted to be sold, and may take such average 
cost as the cost of any particular lot of that kind and grade. The 
licensee must keep a record of the manner in which such average 
has been arrived at and shall take as the cost of all stock remain¬ 
ing on hand from lots already averaged, the average cost pre¬ 
viously arrived at. If the cost of any frozen poultry is averaged 
the cost of all frozen poultry must be averaged. 

Maximum Margins Are Not to Be Regarded as Normal. 

The maximum advances over cost specified in the following 
rules are not to be regarded as normal or so recognized by the 
Food Administration. They are intended only to prevent spec¬ 
ulation and are purposely made wide to cover cases where the 
methods of doing business are more expensive, to the extent that 
such methods are justified. These maximum advances must not 
be exceeded in selling any specified lot of poultry, and the aver¬ 
age advance over cost charged by any dealer must not be more 
than sufficient to return to him a reasonable profit on his invest¬ 
ment in accordance with General Rule 5, which is as follows: 
“The licensee shall not import, manufacture, store, distribute, 
sell, or otherwise handle any food commodities on an unjust, 
exorbitant, unreasonable, discriminatory or unfair commission, 
profit or storage charge. ’ ’ 

Rules and Regulations. 

Rule 1 . No licensee shall knowingly purchase frozen poultry 
from a dealer who sells at a greater advance over cost than the 
maximum specified in the following rules. 

Original Packer or Shipper, Maximum Margin Profit. 

Rule 2. The original packer or shipper, storing in a cold stor¬ 
age warehouse, shall not sell frozen poultry to wholesalers at an 
advance of more than 6 per cent over cost. In case frozen 
poultry is stored in the name of a commission merchant, the orig¬ 
inal storer shall be deemed to be the consignor for whom the com¬ 
mission merchant acts as agent. An additional advance not 
exceeding 5 per cent of cost may be charged by the original 

180 


packer or shipper in selling to jobbers or suppliers of hotels and 
institutions. An additional advance not exceeding 10 per cent of 
cost may be charged in selling to retailers, or an additional 
advance not exceeding 15 per cent of cost may be charged if the 
packer performs the functions of a supplier of hotels and insti¬ 
tutions, as heretofore defined. 

Commission Merchants, Profit Allowed. 

Rule 3. A commission merchant shall not receive a commis¬ 
sion of more than 5 per cent on frozen poultry consigned to him 
by shippers or packers. If a commission merchant acts as an 
agent for dealers other than shippers or packers for the distribu¬ 
tion of surplus stocks the selling price shall not exceed the maxi¬ 
mum advance over cost to the consignor permitted to such con¬ 
signor by the following rules, which advance shall include the 
commission for such sale. A commission merchant who takes to 
account consigned frozen poultry shall not receive any other 
profit beyond the amount of the commission before specified. 

A commission merchant shall require from consignors a state¬ 
ment of cost of goods and maximum selling price allowable under 
these rules. 

Wholesaler, Maximum Margin of Profit Allowed. 

Rule 4. A wholesaler shall not sell frozen poultry at an 
advance of more than 5 per cent over cost. If a wholesaler also 
sells as a jobber, he shall not sell at an advance of more than 10 
per cent over cost as provided for jobbers in Rule 5. The above 
maximum advance may be increased by not to exceed the 6 per 
cent of cost specified in Rule 2, in cases where the wholesaler is 
also the original storer in a cold storage warehouse. 

Jobber, Profit Allowed. 

Rule 5. A jobber shall not sell frozen poultry at an advance 
of more than 10 per cent over cost. The above maximum advance 
may be increased by not to exceed the 6 per cent of cost speci¬ 
fied in Rule 2, in cases where the jobber is also the original storer 
in a cold storage warehouse. 

Supplier of Hotels and Institutions, Margin of Profit. 

Rule 6. A supplier of hotels and institutions shall not sell 
frozen poultry at an advance of more than 15 per cent over cost. 
The above maximum advance may be increased by not to exceed 
the 6 per cent of cost specified in Rule 2, in cases where the sup¬ 
plier of hotels and institutions is also the original storer in a 
cold storage warehouse. 

Direct Line of Distribution. 

Rule 7. A sale by any dealer in frozen poultry in any of the 


181 


classes indicated below to a dealer in any succeeding class shall 
be considered to be in the direct line of distribution: 

Class 1. Original packers and shippers. 

Class 2. Commission merchants—wholesalers. 

Class 3. Jobbers—suppliers of hotels and institutions. 

Class 4. Retailers—hotels and institutions. 

Resale*. 

Rule 8. All trading in frozen poultry shall serve to move the 
frozen poultry in the direct line of distribution to the consumer, 
and nothing contained in this or the preceding rule shall author¬ 
ize any licensee to use any more indirect method of distribution 
of frozen poultry. One sale of any lot of frozen poultry between 
dealers in the same class may be made where necessary to supply 
the reasonable requirements of the buyer’s business, provided a 
report is made promptly to the local Federal Food Administra¬ 
tor. Such sales shall be made at an advance of not more than 
5 per cent over cost except when sold by the original storer who 
shall sell at not more than 6 per cent over cost. If sold by a 
commission merchant to a wholesaler the commission shall not 
exceed 5 per cent. 

Except for such sales no licensee shall sell to another in the 
same or any preceding class of distribution without the written 
consent of the local Federal Food Administrator, which will be 
given only in extraordinary circumstances. Where such consent 
is given the dealer shall not sell at an advance of more than y± 
cent per pound over cost, nor in the case of a commission mer¬ 
chant selling to a wholesaler shall the commission amount to 
more than y± cent per pound. Provided, however, that nothing 
in this rule shall prevent sales at cost. Provided, further, that 
nothing in this rule shall prevent sales for immediate delivery 
from one city to another for actual distribution to relieve excep¬ 
tional local shortage, but a report of any such sale must be 
promptly made to the local Federal Food Administrator, with 
the reasons therefor; such sales shall be made at a price not to 
exceed 5 per cent over cost, or if sold by a commission merchant 
to a wholesaler the commission shall not exceed 5 per cent; and, 
Provided, further, that nothing in the rule shall prevent a com¬ 
mission merchant from acting as an agent for dealers other than 
original shippers and packers, as provided in Rule 3. 

Brokerage Must Not Be Added to Selling Price. 

Rule 9. If brokers act as agents in any sale of frozen poultry 
under these rules brokerage paid shall not be added to the selling 
price of the goods. 


182 


Note to Rules 1 to 9. —Licensees should remember that General Rule 13, 
governing all licensees, provides that the licensee may store poultry “in 
sufficient quantities to fill his reasonable requirements throughout the period 
of scant or no production, ’ ’ and that under this rule poultry must in no case 
be stored for more than twelve months from the date of the original receipt 
in a cold storage warehouse. After the completion of a certain portion of 
the storage season, to be determined in connection with each product (when 
the maximum stocks of each variety can be estimated), a plan may be 
adopted by the United States Food Administration providing for the per¬ 
centage of withdrawals required per month on each variety and for each 
class of business for the balance of the season in order to provide for an 
equitable distribution. 

Licensees engaged in business as cold storage warehousemen will be re¬ 
quired to provide necessary information. Dealers will be required to make 
special monthly storage reports giving the necessary data covering trans¬ 
actions in frozen poultry in accordance with the foregoing rules. 

Note. —When above rules not applicable. The special rules regulating 
the profits of dealers in frozen poultry above do not apply to poultry that is 
placed in cold storage warehouse, but which is removed from the cold storage 
warehouse, for distribution for consumption, within thirty (30) days after 
the date of the original entry of such poultry into the cold storage warehouse. 

The foregoing special regulations are all the regulations relat¬ 
ing to frozen poultry issued by Food Administrators up to the 
date of this publication. All licensees are also subject to the 
general regulations. 

3. Special Regulations Governing Manufacturers, Dealers, Brokers, 
and Commission Merchants in Butter. 

Rule 1. Butter to be sold at reasonable advance over 
cost. —The licensee dealing in butter shall sell such butter with¬ 
out regard to the market or replacement value at the time of the 
sale at not more than a reasonable advance over cost to him of 
the particular butter sold. 

Provided, That any dealer may average the cost of all cold 
storage butter of the same grade placed by him in a cold storage 
warehouse in any calendar month, and may sell such butter at 
not more than a reasonable advance over such average cost. 
When a dealer averages the cost of any butter stored in a calen¬ 
dar month, he must average the cost of all butter stored in that 
month. 

Cost for the purpose of this Rule shall include: 

1. Purchase price. 

2. Transportation charges, if any. 

3. Storage charges actually incurred on cold storage but¬ 

ter. 

4. Insurance charges actually incurred on cold storage 

butter. 

5. Interest on money invested at the current rate, while 

butter is in cold storage. 

6. Actual cost of printing if the butter is put in print 

form from tubs or cubes. 

183 


Cost shall not include any allowances for shrinkage in weight, 
commissions or other expenses than those herein listed. 

Note. —Reports to be furnished on demand. The licensee must be pre¬ 
pared to furnish to the United States Food Administration or to the Federal 
Food Administrator of his State upon demand a full report on costs and 
margins charged or on the maximum prices charged in any given period for 
any grade of butter or any other information which may be considered 
necessary for the purpose of this rule. 

Maximum margins. The Food Administration will consider the sale of any 
grade of butter by any dealer other than a manufacturer or retailer at an 
advance over cost, as hereinbefore defined, of more than the following mar¬ 
gins as prima facie evidence of a violation of the Food Control Act and the 
above rule: 

(a) lc per pound on car lot sales. 

(b) iy 2 c per pound on sales less than a car lot but amounting to 7,000 

pounds or more. 

(c) 2c per pound on sales of less than 7,000 pounds but amounting to 

3,500 pounds or more. 

(d) 2y>c per pound on sales of less than 3,500 pounds but amounting to 

700 pounds or more. 

(e) 3c per pound on sales less than 700 pounds but amounting to 100 

pounds or more. 

(f) 3%c per pound on sales of less than 100 pounds. 

Additional Margins for Storing. 

In addition to the selling margin which normally should be considerably 
below the above maximum margins, and must in no case exceed such maxi¬ 
mum margins, any dealer who carries butter in cold storage more than two 
full calendar months may add a margin of not more than lc per pound 
and an additional %c per pound for each calendar month thereafter during 
which he carries the butter in storage. The total amount for carrying but¬ 
ter in cold storage so added shall not exceed 2c per pound. 

The following table indicates the method by which the dealer may calcu¬ 
late the maximum amounts which may be added to selling margins where a 
dealer holds butter in storage more than two full calendar months: 


Months in Which the Dealer Stores the Butter or Purchases the Butter 
While in Storage. 


Sold in 

May June July 

Aug. Sept. 

Oct. 

Nov. 

Dec. 

Jan. 

Feb. Mar. April 

August.. 

. 1 









Sept 

. 1 V 4 

1 









Oct... .. 

. iy 2 

iy 4 

1 








Nov. 

• 1% 

iy 2 

1% 

1 







Dec. 

. 2 

1% 

iy 2 

1% 

1 






Jan. 

. 2 

2 

1% 

iy 2 

iy 4 

1 





Feb. 

. 2 

2 

2 

1% 

iy 2 

1% 

1 




March. .. 

. 2 

2 

2 

2 

1% 

1% 

1 V 4 

1 



April. .. 

. 2 

2 

2 

2 

2 

1% 

1% 

1% 

1 


M ay. ... 

. . 2 

2 

2 

2 

2 

2 

1% 

1% 

iy 4 

1 

June. . .. 

. 2 

2 

2 

2 

2 

2 

2 

1% 

1% 

iy 4 1 

July. . . . 

. 2 

2 

2 

2 

2 

2 

2 

2 

1% 

iy 2 1% 1 


Note. —The figures indicate cents per pound. 

For example, a dealer storing butter in June and selling it in October 
may add 1% cents per pound to his selling margin, which must in no case 
exceed the margins indicated under Rule 1. 


131 










The above maximum margins are not to be regarded as fair normal mar¬ 
gins or as so recognized by the Food Administration. They are intended 
only to prevent speculation and are purposely made wide enough to cover 
eases where the methods of doing business are more expensive, to the extent 
that such methods are justified. These maximum advances must not be 
exceeded in selling any lot of butter and the prices charged by any dealer 
must not in any case be more than sufficient to return to him a reasonable 
profit on his investment. 

Sales from branch houses. Where butter is transferred by dealer to a 
branch house of such dealer in the same or another city such transfer shall 
not be made at an advance over cost of more than % cent per pound, 
regardless of quantity. In such case, however, when the transaction is in 
as direct a line of distribution as practicable the branch house may figure 
the transfer price as its purchase price and may sell butter at an advance 
over cost on such basis not greater than the maximum margins indicated 
above. If the branch house transfers the butter to another branch house 
of the same dealer the total maximum margin added by both houses shall 
not be greater than the maximum margin allowed to the first branch house 
by this rule. 

Collusive sales. Any sale by a dealer to another dealer at a price higher 
than the price which the second dealer would have to pay in buying on the 
open market will be considered evidence of a collusive sale intended to 
defeat the purpose of Rule 1 by increasing the purchaser’s cost and the 
price which he may charge upon a rising market. 

Rule 2. Manufacturers who perform services of whole¬ 
saler or jobber. —Any manufacturer who acts as a wholesaler 
or jobber shall be subject in such action to the rules and maxi¬ 
mum margins governing wholesalers and jobbers, provided that 
in figuring his purchase price as a wholesaler or jobber he 
shall— 

1. Compute the cost of raw materials and the expense of 
manufacture, or 

2. In the case of cold storage butter consider as his cost the 
market quotation on the kind and grade of butter placed in cold 
storage as quoted in a well recognized daily commercial price 
current in the city where and on the day when the goods are 
placed in storage. In case there is no well recognized daily price 
current in the city where the goods are stored then he may use 
the quotation given in a daily commercial price current in the 
large market nearest the place of storage. From this must be 
deducted the amount by which the freight from the point of 
manufacture to the place of storage is less than the freight from 
the place of manufacture to such large market. In case the 
freight from the place of manufacture to the place of storage 
exceeds the freight from the place of manufacture to such large 
market, the excess may be added to the market quotation. 

Rule 3. Commissions limited. —No licensee shall pay and no 
commission merchant shall receive a commission on butter of 
more than the following: The licensee shall inform any corn- 


185 


mission merchant selling butter for him of the maximum per¬ 
mitted price at which such butter may be sold. 

A. Fresh Butter. 


1. Car lot sales.-. %c per lb. 

2. Sales of less than car lots, but amounting 

to 7,000 lbs. or more.l^c per lb. 

3. Sales of less than 7,000 lbs.l^c per lb. 

B. Cold Storage Butter. 

1. Car lot sales. %c per lb. 

2. Sales of less than car lots. lc per lb. 


Note. —Under Rule 1 the selling price may not be increased by reason 
of the payment of a commission. 

Justifiable Resales. 

The attention of all licensees is called to the provisions of Gen¬ 
eral Rule 6: 

“General Rule 6.—The licensee, in selling food commodi¬ 
ties, shall keep such commodities moving to the consumer 
in as direct a line as practicable and without unreasonable 
delay. Resales within the same trade without reasonable 
justification, especially if tending to result in a higher mar¬ 
ket price to the retailer or consumer, will be dealt with as 
an unfair practice.” 

For the purposes of this Rule and Special Rule 4 following, 
all persons licensed to manufacture or deal in butter shall be 
divided into three classes: 

Class 1. Manufacturers. 

Class 2. Wholesalers and jobbers. These include all per¬ 
sons, firms, corporations and associations who dis¬ 
tribute butter in any way except at retail and all 
manufacturers who perform services customarily 
performed by wholesalers and jobbers. 

Class 3. Retailers, hotels, restaurants and institutions. 

Any transactions that savor of dealing in which a profit ac¬ 
crues to the dealer without corresponding service, are clear vio¬ 
lations of the rule and will subject the offender to revocation of 
his license and to such other penalty as the law provides. 

The following types of sales between dealers will be considered 
justifiable, but sales other than those described between dealers 
in the same class will be considered as prirna facie evidence of 
violation of General Rule 6: 


186 







A—A sale by any dealer in butter to a dealer in any suc¬ 
ceeding class will be considered as in the direct line of 
distribution. 

B—One sale and only one sale of the same goods between 
dealers in Class 2 in the same city will be considered 
justifiable when necessary to supply the reasonable re¬ 
quirements of the buyer’s business, without the special 
consent of the local Federal Food Administrator, pro¬ 
vided, however, that a second sale of the same goods 
between dealers in Class 2 in the same city will be per¬ 
mitted without the consent of the local Federal Food 
Administrator if this sale is made at any advance over 
cost of not more than one-half of the margins indicated 
above; and, provided, that the seller notifies the buyer 
that this is a second sale. 

C—In addition to such resales as are otherwise indicated as 
justifiable, sales between dealers in Class 2 in different 
cities will be considered justifiable, Provided, That an 
actual delivery of the butter follows the sale, and that 
the shipment is for the purpose of obtaining supplies 
from primary markets for reasonable requirements of 
the purchaser’s business; Provided, further, That not 
more than three such sales of any lot of butter between 
dealers in Class 2 shall be made without special permis¬ 
sion ; and the third sale shall be made at an advance 
over cost of not more than one-half of the above mar¬ 
gins. 

D—Any resale between dealers without any advance over 
cost will be considered as justifiable in addition to such 
other resales as are permitted. 

Rule 4. The licensee making second sale in same class to 
notify buyer. —The licensee in Class 2 as defined above, who 
purchases butter from another wholesaler or jobber in such Class 
or from a manufacturer performing the services of a wholesaler 
or jobber and who resells to another dealer in Class 2, shall notify 
such dealer of the prior sales of such butter within that Class of 
which he has knowledge. 

Note. —The above regulations, effective July 19, 1918, supersede the Spe¬ 
cial Regulations Governing Manufacturers, Dealers, Brokers and Commission 
Merchants in Cold Storage Butter, effective June 19, 1918, as amended. It 
is to be noted that the present regulations cover both fresh and cold storage 
butter. These rules do not cover packing stock butter. When packing stock 
butter has been converted into process butter the regulations apply to said 
process or renovated butter. 

Manufacturers.' The rules apply to manufacturers only when they perform 
the services of wholesaler or jobber. 


187 


Shrinkage. The dealer in computing cost cannot take into consideration 
shrinkage in weight of butter. 

4. Wholesalers, Retailers and All Other Dealers in Fresh Poultry 
and Fresh Eggs. 

A. Fresh Poultry. 

Feeding Poultry in Transit; Kind of Feed. 

All live poultry shipped to market in live poultry cars, or in 
coops in cars by freight, or by express in car lots, shall be fed or 
caused to be fed by the licensee at least twice each day with poul¬ 
try feed until killed. Such poultry feed shall consist of cereals, 
either ground or whole, meat scraps, bone meal, dried or evapo¬ 
rated sweet milk or buttermilk, to be thinned by adding water 
or liquid sweet milk or buttermilk; provided, however , that such 
feed shall not contain any wheat fit for human consumption, and 
that in no event shall the amount of wheat in such feed exceed 
10 per cent thereof. The use of any ingredients except those 
enumerated in such poultry feed, is prohibited. 

Sale of Live and Dressed Poultry. 

The licensee shall not sell or offer for sale any live poultry 
which contains more than one ounce of feed for each two pounds 
of live poultry. 

The licensee shall not sell or offer for sale any dressed poultry 
which contains more than one-fifth of an ounce of feed to each 
two pounds, dressed weight, of such poultry. 

Resales of Fresh Poultry Prohibited, when: 

Under General Rule 6, governing all licensees, which prohibits 
resales within the same trade without reasonable justification, 
especially if tending to result in a higher market price, it is ruled 
as follows: 

The United States Food Administration recognizes the follow¬ 
ing classes of dealers in fresh poultry: 

(1) Original packers and shippers. 

(2) Commission merchants and wholesalers. 

(3) Jobbers and suppliers of hotels and institutions. 

(4) Retailers. 

All trading in fresh poultry must contribute toward moving 
the poultry in a direct line to the consumer. Sales between deal¬ 
ers in any one of the classes mentioned above are prohibited, 
except as follows: Sales between wholesalers in different cities 
will for the present be permitted where necessary to supply the 
reasonable requirements of the buyer’s business, provided there 
is an actual shipment of the goods, and provided the movement 
between cities is in the direction of normal crop movement from 

188 


producer to consumer. In addition thereto, not more than two 
sales between dealers in Class 2 may be made without obtaining 
the consent of the local Federal Food Administrator if such sales 
are necessary to supply the reasonable requirements of the buy¬ 
er ’s business, but more than two sales between dealers in Class 2 
shall not be made without the written consent of the local Fed¬ 
eral Food Administrator. One sale, and only one, between deal¬ 
ers in the same class other than Class 2 may be made without 
obtaining the consent of the local Federal Food Administrator 
if such sale is necessary to supply the reasonable requirements 
of the buyer’s business, but more than one such sale shall not be 
made without the written consent of the local Federal Food 
Administrator. 

In no case shall a dealer sell fresh poultry to any dealer in a 
class further removed from the consumer than the class in which 
the seller is included; for example, a jobber shall not sell to a 
wholesaler, or a retailer to a wholesaler. 

Any licensee ignoring the above ruling may expect to have his 
license suspended or revoked without delay. 

B. Fresh Eggs. 

Resales of Fresh Eggs, Prohibited, When. 

Under General Rule 6, governing all licensees, which pro¬ 
hibits resales within the same trade without reasonable justifi¬ 
cation, especially if tending to result in a higher market price, 
it is ruled as follows: 

The United States Food Administration recognizes the follow¬ 
ing classes of dealers in fresh eggs: 

(1) Original packers and shippers. 

(2) Commission merchants and wholesalers. 

(3) Jobbers and suppliers of hotels and institutions. 

(4) Retailers. 

All trading in fresh eggs must contribute toward moving the 
eggs in a direct line to the consumer. Sales between dealers in 
any one of the classes mentioned above are prohibited except as 
follows: Sales between wholesalers in different cities will for the 
present be permitted where necessary to supply the reasonable 
requirements of the buyer’s business, provided there is an actual 
shipment of the goods, and provided the movement between cit¬ 
ies is in the direction of normal crop movement from producer 
to consumer. In addition thereto not more than two sales of any 
lot of fresh eggs between dealers in Class 2 may be made without 
obtaining the consent of the local Federal Food Administrator 
if such sales are necessary to supply the reasonable requirements 
of the buyer’s business, but more than two sales between dealers 


189 


in Class 2 shall not be made without the written consent of the 
local Federal Food Administrator. One sale, and only one, be¬ 
tween dealers in the same class other than Class 2, may be made 
without obtaining the consent of the local Federal Food Admin¬ 
istrator if such sale is necessary to supply the reasonable re¬ 
quirements of the buyer’s business, but more than one such sale 
shall not be made without the written consent of the local Fed¬ 
eral Food Administrator. 

In no case shall a dealer sell fresh eggs to any dealer in a class 
further removed from the consumer than the class in which the 
seller is included; for example, a jobber shall not sell to a whole¬ 
saler, or a retailer to a wholesaler. 

Any licensee ignoring the above ruling may expect to have his 
license suspended or revoked without delay. 

Country Retail Merchant. 

Note. —A retail merchant in the country who buys eggs from a farmer or 
takes eggs in trade is not considered a retailer of eggs. He occupies the 
position more like that of an original packer or shipper and may sell to any¬ 
one he pleases. 

Note. —Duty of licensee to ascertain class in which seller and buyer are 
dealing. Licensees are expected to find out whether sales are justifiable by 
obtaining information as to the class in which the seller and buyer are deal¬ 
ing and the location and class of the dealer from whom the seller purchased. 
This information should be placed on all confirmations of sales of poultry 
and eggs. 

Transactions involving no profit. It has been ruled that no objection will 
be made to resales of fresh eggs aiid poultry that are made at a price that 
is less than or equal to the initial cost to the seller of the particular com¬ 
modities sold. 

Margin of profit; averaging. The margin of profit a dealer in fresh poul¬ 
try and fresh eggs may make is governed by General Rule 5, which prohibits 
an unreasonable profit. 

There is nothing to prevent the averaging of profits on such commodities. 
In the case of those concerns engaged in business of slaughtering and meat 
packing and subject to the rules and regulations relating to profits of such 
business, these commodities are placed within that class which limits the 
annual profits to 15 per cent. 

The same rules with reference to calculation of profits on perishables 
are applicable to fresh eggs and fresh poultry. 

The principle is that the profits must not be more than reasonable, calcu¬ 
lated on a year’s business, or in the ease of those perishables dealt in 
seasonally, calculated on a season’s business. 

What is a reasonable profit is, of course, a question of fact. In de¬ 
termining this, reference may be had to the average profits of previous 
years. In other words, the profits during the normal pre-war condition 
should largely govern in determining the reasonableness of the profit. 

Dealers can average profits against losses, but profits for the year’s busi¬ 
ness must be within reasonable limits. 

The product should be kept moving freely into consumptive channels, 
consistent with equitable and even distribution over the normal season of 
the particular commodity, at the prevailing prices determined by an open, 

190 


unrestricted market without manipulation monopoly or by taking advantage 
of temporary emergencies or artificial conditions. 

Waste. Section 4 of the Food Act prohibits waste. It is particularly 
important in the case of these perishable commodities that the licensee 
does not permit preventable deterioration of the commodity. Eggs should 
be purchased “delivered at destination,’’ subject to candling. The candling 
should be promptly done upon delivery of the product. The Food Adminis¬ 
tration has furnished cards for shippers to be placed in the cases, showing 
that the eggs have been candled, by whom candled, date of candling, etc. 

Licensees subject to General Rules. All licensees dealing in above com¬ 
modities are subject to all the General Rules and Regulations. 

Special Regulations for Licensees Engaged in the Business of Manu¬ 
facture and Dealing in Lard Substitutes. 

Special Permits May Be Issued in Special Cases. 

Rule 1, Every licensee engaged in the manufacture of lard 
substitutes shall be subject to the following rules, provided, that 
in any special instance the United States Food Administrator 
may issue a special permit authorizing an exception to be made: 

Hoarding—Season’s Supply. 

(a) He shall not store, keep on hand, or have in his posses¬ 
sion or under control by contract, or other arrangement, at any 
time: 

(1) A quantity of cotton seed oil or other edible oil, 
whether in crude or refined state, in excess of the reasonable 
requirements of his business for use or sale by him for a 
reasonable time, or reasonably required' to furnish neces¬ 
saries produced in surplus quantities seasonably through¬ 
out the period of scant or no production. 

(2) Any lard substitute, other than of his own manu¬ 
facture. 

( b ) He shall not carry in stock any lard substitute for a 
period exceeding thirty days. 

Contracts for Delivery Beyond Thirty Days, Prohibited. 

(c) He shall not make at any time any contract for the sale 
of lard substitutes for shipment or delivery more than thirty 
days after the making of such contract, provided, however, that 
this rule shall not apply to contracts with Federal, State, County 
or Municipal Governments, or with the government of any nation 
at war with Germany. 

Contracts in Excess Manufacturing Capacity, Prohibited. 

( d ) He shall not make at any time any contract or contracts 
for the sale of lard substitutes in excess of his normal manufac¬ 
turing capacity for a period of thirty days. 

191 


Sales to Certain Concerns, Prohibited. 

(e) He shall not knowingly make any sales of lard substitutes 
to any firm, corporation, association or individual who is not 
regularly engaged in the necessary distribution or in the use or 
consumption of lard substitutes. 

Purchase of Raw Material. 

(/) He shall not knowingly make any purchases of the raw 
materials entering into the manufacture of lard substitutes from 
any firm, corporation, association or individual who is not regu¬ 
larly engaged in the necessary distribution or in the production 
of said commodities. 

All Plants May Be Considered as One Unit to Determine Costs and 
Profits. 

Rule 2. Licensees engaged in the manufacture and distribu¬ 
tion of lard substitutes may consider all plants for the manu¬ 
facture of lard substitutes operated by, belonging to or controlled 
by the licensee as one unit for the purpose of determining costs 
and profits. 

Manufacturers Controlling Cottonseed Mills or Plants for Refining 
Vegetable Oil Must Credit Raw Material and Refined Oil Received 
Therefrom at Market Price at Time of Transfer. 

Rule 3. Licensees engaged in the manufacture of lard sub¬ 
stitutes, who own or control mills crushing cotton seed, peanuts 
or other * oleaginous materials must credit all raw material ob¬ 
tained from such crushing mills at the same price at which they 
could purchase the same products in the open market at the time 
of transfer. 

Rule 4. Licensees engaged in the manufacture of lard substi¬ 
tutes who own or control plants for the refining of vegetable oils 
must credit the refined oil received from said refining plants at 
the same price at which they could obtain the same product in 
the open market at the time of the transfer. 

Cost of Manufacture. 

Rule 5. Every licensee who owns or controls a plant for the 
manufacturing of lard substitutes, shall be subject to such differ¬ 
entials and spreads for the cost of manufacture of crude material 
into a finished product as may from time to time be determined 
and announced by the United States Food Administrator to 
return a fair profit to the licensee. 

Manufacturer’s Price; Differentials. 

Rule 6. No manufacturer engaged in the manufacture of lard 
substitutes shall, without the written permission of the United 
States Food Administrator, sell or offer to sell lard substitutes 


192 - 


at higher prices in one market than he is selling or offering to 
sell the same quality or brand in any other market on the same 
day. The price for sales in lots of 5,000 pounds or more, tierce 
basis, for delivery at one time, net after deducting all discounts 
and allowances, shall be taken as the basis in making comparisons 
for the purpose of this rule. In comparing with this the selling 
price of lots of less than 5,000 pounds, tierce basis for delivery 
at one time, l 1 /^ cents per pound will be deducted from the price 
actually charged. In comparing the price of package and case 
goods, stated differentials will be determined by the United 
States Food Administrator from time to time for all manufac¬ 
turers of lard substitutes. 


Differentials. 


Note. —The selling price of lard substitute, delivered, tierce basis, is 
22 y 2 c per pound in lots of 5,000 pounds or more and 23 %c per pound in lots 
of less than 5,000 pounds, based upon the customary terms of payment within 
30 days, with privilege to the buyer of % of 1% discount for payment 
within 10 days. An additional discount of of 1% shall be made to buyers 
of 30,000 pounds gross or over. These prices, when for export, apply deliv¬ 
ered at American seaport. The following differentials shall apply to package 
or case goods, over and above the base price as specified above: 


Wooden Boxes.. 

New Wooden Tubs—60 to 80 lbs.. 3 /4c over 

Butter Tub—50 or 55 lbs. %c 11 

Kegs—100, 110 or 112 lbs. ^c “ 

Iron Drums—60 or 100 lbs. 11 

Tins— 45 to 50 lbs. Vi e “ 

Packages—Over 10 lbs., up to and including 20 lbs. net.lc 11 

Packages—Over 5 lbs., up to and including 10 lbs. net.2c “ 

Packages—Over 3 lbs., up to and including 5 lbs. net.2^0 “ 

Packages—Up to and including 3 lbs. net.3c “ 

Drums—Of approximately 340 lbs., said Drums to be 

returned to manufacturer when empty. %c less 


Base Price 

i ( ii 

n n 
u n 
a tt 
11 a 
11 n 
it a 
it tt 

a a 

tt tt 


Provided, however, that the foregoing shall not apply to negotiations with 
federal, state, county or municipal governments or with the governments of 
any nation at war with Germany. 

(a) No allowances, discounts or rebates other than those above specified 
shall be made to any buyer except for proven damage or shortage. Any 
allowance or refund for proven damage or shortage shall be reported imme¬ 
diately to the Food Administration. 

(b) No consignment or shipment shall be made to jobbers or retailers 
except upon bona fide purchase as specified in paragraph above. 

(c) Manufacturers who distribute in those sections of the West whose 
freight rates are so high as to justify charging more than the above prices 
may make written application to the Food Administration for permission 
to charge higher prices to specified points. 

(d) These findings are based upon the price received by the producer 
for his cotton seed translated into the fair price of cotton seed oil, which 
oil you have been requested to purchase, treat and store in order that it 

193 










may, without advance in price, be available to the consumer as cooking fat 
in the approaching period of scarcity due to cessation of production. 

Proprietary Brands. 

This rule applies to proprietary brands or advertised as well as to stand¬ 
ard brands of lard substitute. 

Manufacturers may combine standard and proprietary or advertised 
brands in one order, the sum total of such order being the aggregate of 
both brands therein included. 

By the term ‘ * proprietary ’ ’ or t( advertised ’ ’ brands is meant those 
brands of lard substitute which are sold only in packages up to and 
including “20*8. ” Any manufacturer distributing a proprietary or adver¬ 
tised brand shall make special application to the United States Food Ad¬ 
ministration, setting forth the name of such brand or brands, the size or 
sizes of the packages, the desired unit of sale, together with the price or 
prices that it is proposed to charge for the said brand or brands. The 
premium granted shall remain effective and binding until change is au¬ 
thorized in writing by the United States Food Administration. 

Proprietary brands cannot be sold in packages of over “20's .” The 
minimum premium to be charged on proprietary brands is ^c per pound 
over the basis price for standard brands of lard substitute. All differentials, 
both as to quantity and packages, must, however, conform to the differentials 
set forth above. 

Applications regarding proprietary brands, as provided above, must be 
promptly submitted. 

Standard Brand Lard Substitute: The price of standard brand lard 
substitute in lots of less than 5,000 pounds, in the States of New Mexico, 
Arizona, Montana, Wyoming, Idaho, Utah and Nevada, is 24 1 / £c per pound, 
tierce basis. The price in lots of 5,000 pounds or over remains unchanged. 
The increase in price in lots of less than 5,000 pounds is made to offset the 
average higher freight rates from jobbing centers to points of consumption. 

Lard Substitute Containing 40 Ter Cent Edible Tallow: Lard substitutes 
which contain 40 per cent edible tallow are to be sold in the States of 
California, Washington, Oregon and Nevada at 21%c in lots of 5,000 
pounds or over, and 23c in lots of less fhan 5,000 pounds. 

Pooling of Orders: Sales to one buyer, in lots of 5,000 pounds or over, 
can be distributed to several different stores belonging to that buyer in the 
same town and on the same day. Pooling of orders by the seller, how¬ 
ever, is prohibited. 

Sales to Railroad Companies: The foregoing rules, with respect to the 
price differentials, apply to sales to railroad companies that are being 
operated by the Federal Government under the act of August 29, 1916. 

Illustrative Case: Is it permissible under the foregoing rules to make a 
consignment of compound to a broker? 

Answer: Section B in “Note” under Rule 6 provides that no consign¬ 
ment or shipment shall be made to jobbers or retailers except on bona fide 
purchase as specified in paragraph above. A consignment, however, to a 
bona fide broker, who is not a jobber, would be permitted, but not a con¬ 
signment to jobbers. A bona fide broker may hold and distribute the product 
in accordance with Rule 6. 

Interpretation of Rules: All manufacturers of lard substitutes who 
may be distributing either to wholesalers or retailers, or direct to con¬ 
sumers, are subject to the above rules and regulations, and are not subject 
to the special regulations relating to wholesalers of lard substitutes. 

Wholesalers, jobbers, importers, retailers and brokers of lard and lard 
substitutes are governed by special rules applying to licensed non-perishable 

194 


food commodities. The maximum margins on sales by wholesalers to retail¬ 
ers is named as l^c to 2c per pound. 

All licenses under these Regulations are subject to the General Rules. 
When a Special Rule named above is inconsistent with a General Rule the 
Special Rule shall prevail. 

Special Rules and Regulations Governing Licensees Operating Pack¬ 
ing Houses for the Preparation of Meats and Other Licensed Commodi¬ 
ties Usually Handled by Such Packing Houses, Including Branch Houses 
and Other Subsidiary Organisations of Said Licensees. 

Rule 1. The licensee shall not hold, contract for or arrange 
for any fresh, canned or cured beef, pork or mutton, or any sugar 
syrups or clarified sugar for use by him in manufacturing, pre¬ 
serving or curing in a quantity in excess of the reasonable re¬ 
quirements of his business for use or sale by him for a reason¬ 
able time, or reasonably required to furnish necessaries produced 
in surplus quantities seasonally throughout the period of scant 
or no production. 

Note. —The foregoing special rule does not apply to wholesale or retail 
dealers, or anyone except packing houses. This rule does not authorize 
packing houses to sell, or make contracts to sell, any product in any differ¬ 
ent -way from that provided by General Rules 13, 14 and 15 following, but 
it does permit such licensees to hold, or contract to buy, in the manner 
specified. 

Rule 2. The licensee shall not on any day sell, or offer to sell, 
cured pork products at higher levels of price at one branch house 
in the United States than in another, proper allowance being 
made for difference in cost of transportation and service. 

Note. — Price Basis May 1: Until further notice, the Food Administra¬ 
tion will regard any increase by a packing house licensee, which has during 
1918 been allotted orders for pork products from any of the allied nations, 
of the price of cured pork products to retailers in the United States over 
the price charged by such licensee on May 1, as exorbitant and unreason¬ 
able and a violation of General Rule 5; unless such increase is justifiable 
and is first submitted to the United States Food Administration with an 
explanation of the reasons therefor. 

Each such licensee was required to report to the Meat Division, Wash¬ 
ington, D. C., on or before May 20, 1918, its scale of prices then charged 
to retailers for the following commodities, such report to be on packing 
house basis unless otherwise specifically shown: 

1. Fancy brand ham, light average; 

2. Fancy brand ham, medium average; 

3. Fancy brand ham, heavy average; 

4. Fancy brand breakfast bacon, light average; 

5. Fancy brand breakfast bacon, medium average; 

6. Fancy brand breakfast bacon, heavy average; 

7. Standard brand hams, light average; 

8. Standard brand hams, medium average; 

9. Standard brand hams, heavy average; 

10. Standard brand breakfast bacon, light average; 

11. Standard brand breakfast bacon, medium average; 

12. Standard brand breakfast bacon, heavy average; 

Also differential on skinned hams; 

13. Pure refined lard, tierce basis. 

195 


Rule 2. Supra, forbids the packers to offer, their cured products at 
higher prices at one market than in another, proper allowances being made 
for differences in the cost of transportation and service (which includes 
different branch house expenses). It is the general purpose of this rule, 
undoubtedly, to prevent the packer from taking advantage in the disposal 
of his product of the fact that in one place he may be without competi¬ 
tion, where in another place he meets competition, and also to avoid specu¬ 
lative advances based on temporary and local shortages of product. 

It is noted that the enumerated cured pork products above, which must 
be sold on the basis of the price of May 1, are limited to the business of 
those packers which do an export business. 

Rule 2 and the above regulations apply only to Cured Pork products. 
This regulation is somewhat similar to the statutes found in a number of 
states known as the Anti-Discrimination Laws, which prohibit the discrimin¬ 
ation in price between different purchasers of commodities. 

Figuring Selling Price: A packer, in figuring a selling price under the 
above rule, is permitted to use as a basis his cost list in effect on May 1, 
on the various items enumerated. In figuring his selling price, he would 
be permitted to add the freight to destination, and in the case of where the 
packer had branch houses, he could add the freight to the branch house and 
also the average branch house expenses. To this item he would, of course, 
be permitted to add a reasonable sum to cover shrinkage and profit, which 
in the case, for example, of Hams above, should not exceed l^c to 2c a 
pound. In the case of where special services are rendered, as for example, 
sales to the consuming trade, as hotels and restaurants, he would be per¬ 
mitted an additional reasonable margin of profit to cover such additional 
services. In case the price of May 1 would cease to be reasonable by 
reason of increased costs of raw material, or for any other reason, the packer 
should, of course, in such case submit full facts to the Administration, 
together with the amount of his proposed increase over the May 1 price, stat¬ 
ing fully the reasons and conditions which justify the increase. If the 
increase is proper, no doubt, the Food Administration will grant it. 

General and special rules and regulations. —All licensees 
are subject to the foregoing special rules and also to the special 
rules and regulations regulating the profits of slaughtering and 
meat packing concerns, with which every licensee should famil¬ 
iarize himself. Said licensees are also subject to the general rules 
and regulations contained in this book, and also the following 
general rules: 

9, 13, 14, 15, 16, 24, 25 and 27, 

except in so far as such rules and regulations may be modified 
by the special rules above referred to. The following general 
rules were originally contained in the general rules as published: 

General rule 9. Carload shipments. —All carload ship¬ 
ments of the following commodities shall be made in car lots of 
not less than the amount prescribed below unless a definite mini¬ 
mum is authorized by special, written permission of the United 
States Food Administrator, provided, however, that when cars 
of lower carrying capacity are used, the maximum load which 
the car will carry may be used without such permission. 


196 


Fresh Meat.22,000 lbs. from April 1 to Sep¬ 

tember 30; 24,000 lbs. remainder 
of year. 

Fresh meat mixed with cured 
beef, cured pork, cured mutton, 

lard or lard substitutes.24,000 lbs. from April 1 to Sep¬ 

tember 30; 26,000 remainder of 
year. 

Cured beef, cured pork, cured 
mutton, lard and lard substi¬ 


tutes, straight or mixed.30,000 lbs. 

Frozen beef.30,000 lbs. 


Note. —The foregoing units do not apply to a car that is partly unloaded 
at various points en route (a so-called “peddler’’ car) unless the distribu¬ 
tion of the contents of such car is handled through a branch house of the 
licensee or reshipment is to be made by the branch house. 

Only so much of the above rule is given here as includes Fresh Meat, 
Cured Beef and Frozen Beef. For other minimum trade units, see special 
regulations relating to the particular commodity, to which regulations the 
packer is subject. 

General rule 13. Hoarding. —The licensee shall not, with¬ 
out the written consent of the United States Food Administra¬ 
tor, or his duly authorized representative, keep on hand, or have 
in possession or under control, by contract or other arrangement, 
at any time, any food commodities in a quantity in excess of the 
reasonable requirements of his business for use or sale by him 
during a period of sixty days: Provided, however, That this 
rule shall not prevent the licensee from storing in sufficient quan¬ 
tities to fill his reasonable requirements throughout the period 
of scant or no production, any of the following commodities: 
Butter, cheese, fresh fish, frozen fish, fresh fruits, fresh vegeta¬ 
bles, poultry, eggs, canned peas, canned tomatoes, canned corn, 
canned salmon, canned sardines, dried prunes, dried apples, 
dried peaches, dried raisins, molasses in bulk, alfalfa meal, dried 
beet pulp, copra cake or meal, linseed cake or meal, milo, kaffir, 
feterita, sunflower seed, broken wheat mixture, baled straw, baled 
hay, baled alfalfa, millet, palm nut meal, palm kernel meal, buck¬ 
wheat and also its products, fishscrap, peanut hay meal, peanut 
feed, imported grain screenings, wild buckwheat, pure maple 
sugar, pure maple syrup. 

Provided, That this rule shall not be construed to prohibit the 
storing of food commodities for seeding purposes if notice of the 
amount and location of such seed is sent to the United States 
Food Administrator before the expiration of sixty days from the 
date when said food commodities are stored. 


197 






Provided, f arther, That this rule shall not prevent any licensee 
from having a carload of any commodity in transit, in addition 
to a supply thereof sufficient to last until arrival of said carload. 

Note.—T his rule does not prohibit the storing of commodities for more 
than sixty days; a quantity that is not in excess of the reasonable require¬ 
ments of the licensee’s business for more than sixty days may be stored for a 
longer period than sixty days if necessary. 

Note. —Under General Rule 13, supra, the licensee may store, or he may 
arrange for or contract for sufficient quantities of seasonal commodities 
listed in the rule to fill his reasonable requirements throughout the period 
of scant or no production. 

General rule 14. Sales to hoarders forbidden.— The licen¬ 
see shall not sell or deliver to any person any food commodities 
without the consent of the United States Food Administration 
if the licensee knows, or has reason to believe, that such a sale or 
delivery will give to such person a supply of any such commodi¬ 
ties in excess of his reasonable requirements for use or sale by 
him during the period of sixty days next succeeding any sale 
or delivery • provided, however, that this rule shall not prevent 
sales or deliveries to any person of any of the commodities speci¬ 
fied in Rule 13 in such quantities as will give such person a suf¬ 
ficient supply of such commodities to fill his reasonable require¬ 
ments throughout the period of scant or no production; and, 
provided, further that this rule shall not prevent the sale or 
delivery of any food commodities to any person for the Federal, 
State, County or Municipal governments or for the government 
of any nation at war with Germany, or the sale or delivery of a 
carload of that commodity to any licensee having less than a car- 
load lot on hand. 

General rule 15. Period of delivery, 60 days.— Provides 
that except as to those commodities named in Rule 13, supra, a 
licensee is prohibited from making, or having outstanding, any 
contract for shipments or delivery more than sixty days after 
the making of such contract. An exception is made in the case 
of contracts with Federal, State, County or Municipal Govern¬ 
ments, or any government at war with Germany, and also in the 
case of an importer who may sell goods to be imported for deliv¬ 
ery upon arrival. This rule and Rule 13 do not affect the valid¬ 
ity of any contract for the sale of corn, oats or barley entered 
into prior to November 15, 1917, unless the cancellation of such 
contract should be hereafter ordered by the United States Food 
Administration. 

Note.—T his rule does not apply to contracts for the sale of commodities 
listed in Rule 13. 

A licensee may book orders for seed corn for delivery more than sixty 
days after the making of the contract. 


198 


General rule 16. Contracts entered into prior to October 
15, 1917.—Provides that all bona fide contracts made prior to 
October 15, 1917, are not affected by Rules 13 and 15, supra, and 
and that between the dates of December 1 and 15, 1917, all con¬ 
tracts of sale which were not fully performed on January 1, 1918, 
should be reported to the United States Food Administrator. 

General rule 24. Branding products held thirty days or 
over. —No licensee shall sell or offer for sale fresh meat, fresh 
meat products, fresh or frozen fish, poultry, eggs or butter, which 
have been held for a period of thirty days or over in a cold stor¬ 
age warehouse unless such commodities are plainly marked, 
stamped or tagged, either upon the container wherein packed, or 
upon the article of food itself with the words “Cold Storage.” 
The licensee shall keep such mark, stamp or tag in plain view, 
and shall not represent or advertise as fresh any such commodi¬ 
ties; and if he is a retailer, shall display a placard plainly and 
conspicuously marked “Cold Storage Goods” on the bulk mass 
or articles of food. Any invoice or bill rendered for such goods 
shall clearly describe the commodities, using the words “Cold 
Storage Goods. ’ \ 

General rule 25. Markings must not be removed.— No 
licensee shall remove or erase or permit to be removed or erased 
any mark, stamp or tag bearing the words “Cold Storage” or 
other words required by these Rules and Regulations to be placed 
on any food commodities or upon the containers wherein they 
are packed. When any food commodities are transferred from 
a container bearing the words “Cold Storage,” or such food 
commodities are divided into smaller lots or units, the words 
“Cold Storage” shall be plainly and conspicuously marked upon 
the containers, cartons, packages or wrappers to which they are 
transferred. 

General rule 27.— Certificate to be given warehouseman 
upon his request.— (Effective February 7, 1918.) The licensee 
storing with a cold storage warehouseman commodities required 
to be licensed upon which the warehouseman either directly or 
indirectly loans money, shall upon request of such warehouse¬ 
man file with him a certificate stating the market value of the 
goods stored and shall make no false or misleading statement in 
such certificate, nor shall he fail to maintain the margin required 
on all loans by Special Rule 5 governing licensees engaged in 
business as cold storage warehousemen. 

Note. —The packer engaged in any business covered by the Special Rules 
contained in this book would be subject of course to all such Special Rules 
covering such business. 


199 


UNITED STATES STATUTES 

Digests and Comments. All Important Sections Printed in Full. 

FOOD SURVEY LAW 

Stimulation of Production of Food Products; Power and Authority 
Conferred. 

An Act To provide further for the national security and defense by 
stimulating agriculture and facilitating the distribution of agricultural 
products. 

Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled , That, for 
the purpose of more effectually providing for the national 
security and defense and carrying on the war with Germany by 
gathering authoritative information concerning the food supply, 
by increasing production, by preventing waste of the food supply, 
by regulating the distribution thereof, and by such other means 
and methods as are hereinafter provided, the powers, authori¬ 
ties, duties, obligations, and prohibitions hereinafter set forth 
are conferred and prescribed. 

Investigation by the Secretary of Agriculture of Supply, Consumption, 
Cost, Prices of Food, Food Materials, Feeds, Fertilizer, Agricultural Ma¬ 
chinery, etc. Power to Secure Information; Penalties for Failure to 
Give the Same. 

Sec. 2. That the Secretary of Agriculture, with the approval 
of the President, is authorized to investigate and ascertain the 
demand for the supply, consumption, costs, and prices of, and 
the basic facts relating to the ownership, production, transporta¬ 
tion, manufacture, storage, and distribution of, foods, food 
materials, feeds, seeds, fertilizers, agricultural implements and 
machinery, and any article required in connection with the pro¬ 
duction, distribution, or utilization of food. It shall be the 
duty of any person, when requested by the Secretary of Agri¬ 
culture, or any agent acting under his instructions, to answer 
correctly, to the best of his knowledge, under oath or otherwise, 
all questions touching his knowledge of any matter authorized 
to be investigated under this section, or to produce all books, 
letters, papers, or documents in his possession, or under his 
control, relating to such matter. Any person who shall, within 
a reasonable time to be prescribed by the Secretary of Agri¬ 
culture, not exceeding thirty days from the date of the 
receipt of the request, willfully fail or refuse to answer such 
questions or to produce such books, letters, papers, or documents, 
or who shall willfully give any answer that is false or misleading, 


200 


shall be guilty of a misdemeanor, and upon conviction thereof 
shall be punished by a fine not exceeding $1,000 or by imprison¬ 
ment not exceeding one year, or both. 

Purchase and Distribution of Seeds, etc. 

Sec. 3. That whenever the Secretary of Agriculture shall 
find that there is or may be a special need in any restricted area 
for seeds suitable for the production of food crops, he is author¬ 
ized to purchase, or contract with persons to grow such seeds, 
to store them, and to furnish them to farmers for cash, at cost, 
including the expense of packing and transportation. 

Co-operation With State and Local Officials. 

Sec. 4. That the Secretary of Agriculture is authorized to 
co-operate with such State and local officials, and with such public 
and private agencies, or persons, as he finds necessary, and to 
make such rules and regulations as are necessary effectively to 
carry out the preceding sections of this Act. 

President By and With Consent of Congress May Appoint Two As¬ 
sistant Secretaries of Agriculture. 

Sec. 5. That the President, by and with the advice and consent 
of the Senate, may appoint two additional Assistant Secretaries 
of Agriculture, who shall perform such duties as may be required 
by law or prescribed by the Secretary of Agriculture, and who 
shall each be paid a salary of $5,000 per annum. 

Co-operation of Government Agencies With Secretary of Agriculture. 

Sec. 6. That the President is authorized to direct any agency 
or organization of the Government to co-operate with the Secre¬ 
tary of Agriculture in carrying out the purposes of this Act and 
to co-ordinate their activities so as to avoid any preventable loss 
or duplication of work. 

Definitions. 

Sec. 7. That words used in this Act shall be construed to 
import the plural or the singular as the case demands, and the 
word ‘‘person/’ wherever used in this Act, shall include indi¬ 
viduals, partnerships, associations, and corporations. 

Appropriations; Employees Not Exempt from Military Service; Re¬ 
ports of Expenditures of Moneys Appropriated. 

Sec. 8 . That for the purpose of this Act, the following sums 
are hereby appropriated, out of any moneys in the Treasury not 
otherwise appropriated, available immediately and until June 
thirtieth, nineteen hundred and eighteen: For the prevention, 


201 


control, and eradication of the diseases and pests of live stock; 
the enlargement of live stock production, and the conservation 
and utilization of meat, poultry, dairy, and other animal 
products, $885,000. 

For procuring, storing, and furnishing seeds, as authorized by 
Section Three of this Act, $2,500,000, and this fund may be used 
as a revolving fund until June thirtieth, nineteen hundred and 
eighteen. 

For the prevention, control, and eradication of insects and 
plant diseases injurious to agriculture, and the conservation and 
utilization of plant products, $441,000. 

’ For increasing food production and eliminating waste and 
promoting conservation of food by educational and demonstra- 
tional methods, through county, district, and urban agents and 
others, $4,348,400. 

For gathering authoritative information in connection with the 
demand for, and the production, supply, distribution, and utili¬ 
zation of food, and otherwise carrying out the purposes of Section 
Two of this Act; extending and enlarging the market news 
service; and preventing waste of food in storage, in transit, or 
held for sale; advise concerning the market movement or distri¬ 
bution of perishable products; for enabling the Secretary of 
Agriculture to investigate and certify to shippers the condition 
as to soundness of fruits, vegetables, and other food products, 
when received at such important central markets as the Secretary 
of Agriculture may from time to time designate and under such 
rules and regulations as he may prescribe: Provided, That certifi¬ 
cates issued by the authorized agents of the department shall 
be received in all courts as prima facie evidence of the truth of 
the statements therein contained; and otherwise carrying out the 
purposes of this Act, $2,522,000: Provided further, That the 
Secretary of Agriculture shall, so far as practicable, engage the 
services of women for the work herein provided for. 

For miscellaneous items, including the salaries of Assistant 
Secretaries appointed under this Act; special work in crop esti¬ 
mating ; aiding agencies in the various States in supplying farm 
labor; enlarging the informational work of the Department of 
Agriculture; and printing and distributing emergency leaflets, 
posters, and other publications requiring quick issue or large 
editions, $650,000. 

Provided, That the employment of any person under the provi¬ 
sions of this Act shall not exempt any such person from military 
service under the provisions of the selective draft law approved 
May eighteenth, nineteen hundred and seventeen. 

It shall be the duty of the Secretary of Agriculture to submit 
to Congress at its regular session in December of each year a 


202 


detailed report of the expenditure of all moneys herein appro¬ 
priated. 

Sections 9, 10, and 11 are amendments to the following Stat¬ 
utes : An Act Providing for Inspection of Meats for Exportation, 
Prohibiting the Importation of Adulterated Articles of Food or 
Drink and Authorizing the President to make Proclamations in 
such Cases and for other Purposes (26 Statutes at large, Page 
414) ; An Act to Provide for an enlarged Homestead and an Act 
known as “The Reclamation Act,” respectively, and relate to 
subject matters which are not within the scope of this work. 

Section 12—Duration of the Law. 

Sec. 12. That the provisions of this Act shall cease to be in 
effect when the national emergency resulting from the existing 
state of war shall have passed, the date of which shall be ascer¬ 
tained and proclaimed by the President; but the date when this 
Act shall cease to be in effect shall not be later than the beginning 
of the next fiscal year after the termination, as ascertained by the 
President, of the present war between the United States and 
Germany. 


FOOD CONTROL LAW 

Governmental Control of the Supply and Distribution of Necessaries; 
President Authorized to Make Rules and Regulations. 

An Act to provide further for the national security and defense by 
encouraging the production, conserving the supply, and controlling the 
distribution of food products and fuel. 

Be it enacted by the Senate and Home of Representatives of 
the United States of America in Congress assembled, That by 
reason of the existence of a state of war, it is essential to the 
national security and defense, for the successful prosecution of 
the war, and for the support and maintenance of the Army and 
Navy, to assure an adequate supply and equitable distribution, 
and to facilitate the movement of foods, feeds, fuel, including 
fuel oil and natural gas, and fertilizer and fertilizer ingredients, 
tools, utensils, implements, machinery, and equipment required 
for the actual production of foods, feeds and fuel, hereafter in 
this Act called necessaries; to prevent, locally or generally, 
scarcity, monopolization, hoarding, injurious speculation, manip¬ 
ulations, and private controls, affecting such supply, distribution, 
and movement; and to establish and maintain governmental con¬ 
trol of such necessaries during the war. For such purposes the 
instrumentalities, means, methods, powers, authorities, duties, 
obligations, and prohibitions hereinafter set forth are created, 
established, conferred, and prescribed. The President is author- 


203 


ized to make such regulations and to issue such orders as are 
essential effectively to carry out the provisions of this Act. 

President Authorized to Create Agencies and Employ Persons With¬ 
out Compensation. 

Sec. 2. That in carrying out the purposes of this Act the 
President is authorized to enter into any voluntary arrangements 
or agreements, to create and use any agency or agencies, to accept 
the services of any person without compensation, to co-operate 
with any agency or person, to utilize any department or agency 
of the Government, and to co-ordinate their activities so as to 
avoid any preventable loss or duplication of effort or funds. 

Pecuniary Interests of Agents or Employes in Contracts, Forbidden; 
Penalty. 

Sec. 3. That no person acting either as a voluntary or paid 
agent or employee of the United States in any capacity, including 
an advisory capacity, shall solicit, induce, or attempt to induce 
any person or officer authorized to execute or to direct the 
execution of contracts on behalf of the United States to make any 
contract or give any order for the furnishing to the United States 
of work, labor, or services, or of materials, supplies, or other 
property of any kind or character, if such agent or employee has 
any pecuniary interest in such contract or order, or if he or any 
firm of which he is a member, or corporation, joint-stock com¬ 
pany, or association of which he is an officer or stockholder, or 
in the pecuniary profits of which he is directly or indirectly 
interested, shall be a party thereto. Nor shall any agent or 
employee make, or permit any committee or other body of which 
he is a member to make, or participate in making, any recom¬ 
mendation concerning such contract or order to any council, 
board, or commission of the United States, or any member or 
subordinate thereof, without making to the best of his knowledge 
and belief a full and complete disclosure in writing to such 
council, board, commission, or subordinate of any and every 
pecuniary interest which he may have in such contract or order 
and of his interest in any firm, corporation, company, or asso¬ 
ciation being a party thereto. Nor shall he participate in the 
awarding of such contract or giving such order. Any willful 
violation of any of the provisions of this section shall be punish¬ 
able by a fine of not more than $10,000, or by imprisonment of 
not more than five years, or both: Provided, That the provisions 
of this section shall not change, alter or repeal section forty-one 
of chapter three hundred and twenty-one, Thirty-fifth Statutes at 
Large. 

Destroying Necessaries, Committing Waste, Hoarding, Discriminatory 
or Unreasonable Charges of Necessaries, Prohibited. Limiting Trans- 

204 


portation, Producing, Manufacturing, etc., Facilities, Restricting Supply, 
Distribution, etc., Unlawful. 

Sec. 4. That it is hereby made unlawful for any person 
willfully to destroy any necessaries for the purpose of enhancing 
the price or restricting the supply thereof; knowingly to commit 
waste or willfully to permit preventable deterioration of any 
necessaries in or in connection with their production, manufac¬ 
ture, or distribution; to hoard, as defined in section six of this 
Act, any necessaries; to monopolize or attempt to monopolize, 
either locally or generally, any necessaries; to engage in any 
discriminatory and unfair, or any deceptive or wasteful practice 
or device, or to make any unjust or unreasonable rate or charge, 
in handling or dealing in or with any necessaries; to conspire, 
combine, agree, or arrange with any other person, (a) to limit 
the facilities for transporting, producing, harvesting, manufac¬ 
turing, supplying, storing, or dealing in any necessaries; (b) to 
restrict the supply of any necessaries; (c) to restrict distribution 
of any necessaries; (d) to prevent, limit, or lessen the manu¬ 
facture or production of any necessaries in order to enhance the 
price thereof, or (e) to exact excessive prices for any necessaries; 
or to aid or abet the doing of any act made unlawful by this 
section. 

The President Authorized to License Importation, Manufacture, Stor¬ 
age and Distribution of Any Necessaries; to Provide Regulations for 
Licenses, Require Reports, Revoke or Suspend Licenses; Carrying on 
Business Without a License When Required, or After License Has Been 
Revoked or Suspended, Forbidden; Penalties; Parties Excepted; Retailer 
Defined. 

Sec. 5. That, from time to time, whenever the President shall 
find it essential to license the importation, manufacture, storage, 
mining, or distribution of any necessaries, in order to carry into 
effect any of the purposes of this Act, and shall publicly so 
announce, no person shall, after a date fixed in the announcement, 
engage in or carry on any such business specified in the announce¬ 
ment of importation, manufacture, storage, mining, or distri¬ 
bution of any necessaries as set forth in such announcement, 
unless he shall secure and hold a license issued pursuant to this 
section. The President is authorized to issue such licenses and 
to prescribe regulations for the issuance of licenses and require¬ 
ments for systems of accounts and auditing of accounts to be 
kept by licensees, submission of reports by them, with or without 
oath or affirmation, and the entry and inspection by the Presi¬ 
dent’s duly authorized agents of the places of business of 
licensees. Whenever the President shall find that any storage 
charge, commission, profit, or practice of any licensee is unjust, 
or unreasonable, or discriminatory and unfair, or wasteful, and 


205 


shall order such licensee, within a reasonable time fixed in the 
order, to discontinue the same, unless such order, which shall 
recite the facts found, is revoked or suspended, such licensee shall, 
within the time prescribed in the order, discontinue such unjust, 
unreasonable, discriminatory and unfair storage charge, commis¬ 
sion, profit, or practice. The President may, in lieu of any such 
unjust, unreasonable, discriminatory, and unfair storage charge, 
commission, profit, or practice, find what is a just, reasonable, 
nondiscriminatory and fair storage charge, commission, profit, 
or practice, and in any proceeding brought in any court such 
order of the President shall be prima facie evidence. Any person 
who, without a license issued pursuant to this section, or whose 
license shall have been revoked, knowingly engages in or carries 
on any business for which a license is required under this section, 
or willfully fails or refuses to discontinue any unjust, unrea¬ 
sonable, discriminatory and unfair storage charge, commission, 
profit, or practice, in accordance with the requirement of an 
order issued under this section, or any regulation prescribed 
under this section, shall upon conviction thereof, be punished 
by a fine not exceeding $5,000, or by imprisonment for not more 
than two years, or both: Provided , That this section shall not 
apply to any farmer, gardener, co-operative association of 
farmers or gardeners, including live stock farmers, or other 
persons with respect to the products of any farm, garden, or 
other land owned, leased, or cultivated by him, nor to any retailer 
with respect to the retail business actually conducted by him, nor 
to any common carrier, nor shall anything in this section be 
construed to authorize the fixing or imposition of a duty or tax 
upon any article imported into or exported from the United 
States or any State, Territory, or the District of Columbia: 
Provided further, That for the purpose of this Act a retailer 
shall be deemed to be a person, copartnership, firm, corporation, 
or association not engaging in the wholesale business whose gross 
sales do not exceed $100,000 per annum. 

Note: See Proclamations INFRA issued by the President hereunder. 

Hoarding Defined; Transactions on Exchange, Board of Trade, etc., 
Not Included; Punishment. 

Sec. 6. That any person who willfully hoards any necessaries 
shall upon conviction thereof be fined not exceeding $5,000 or 
be imprisoned for not more than two years, or both. Necessaries 
shall be deemed to be hoarded within the meaning of this Act 
when either (a) held, contracted for, or arranged for by any 
person in a quantity in excess of his reasonable requirements for 
use or consumption by himself and dependents for a reasonable 
time; (b) held, contracted for, or arranged for by any manu- 

206 


facturer, wholesaler, retailer, or other dealer in a quantity in 
excess of the reasonable requirements of his business for use or 
sale by him for a reasonable time, or reasonably required to 
furnish necessaries produced in surplus quantities seasonally 
throughout the period of scant or no production; or (c) withheld, 
whether by possession or under any contract or arrangement, 
from the market by any person for the purpose of unreasonably 
increasing or diminishing the price: Provided, That this section 
shall not include or relate to transactions on any exchange, board 
of trade, or similar institution or place of business as described 
in section thirteen of this Act that may be permitted by the 
President under the authority conferred upon him by said section 
thirteen: Provided, however, That any accumulating or with¬ 
holding by any farmer or gardener, co-operative association of 
farmers or gardeners, including live stock farmers, or any other 
person, of the products of any farm, garden, or other land owned, 
leased, or cultivated by him shall not be deemed to be hoarding 
within the meaning of this Act. 

Necessaries Hoarded Subject to Seizure by Libel; Disposition of Pro¬ 
ceeds; Duty of United States Attorney. 

Sec. 7. That whenever any necessaries shall be hoarded as 
defined in section six they shall be liable to be proceeded against 
in any district court of the United States within the district 
where the same are found and seized by a process of libel for 
condemnation, and if such necessaries shall be adjudged to be 
hoarded they shall be disposed of by sale in such manner as to 
provide the most equitable distribution thereof as the court may 
direct, and the proceeds thereof, less the legal costs and charges, 
shall be paid to the party entitled thereto. The proceedings of 
such libel cases shall conform as near as may be to the proceedings 
in admiralty, except that either party may demand trial by jury 
of any issue of fact joined in any such case, and all such pro¬ 
ceedings shall be at the suit of and in the name of the United 
States. It shall be the duty of the United States attorney for 
the proper district to institute and prosecute any such action 
upon presentation to him of satisfactory evidence to sustain the 
same. 

Destroying Necessaries to Enhance Price; Penalty. 

Sec. 8. That any person who willfully destroys any necessaries 
for the purpose of enhancing the price or restricting the supply 
thereof shall, upon conviction thereof, be fined not exceeding 
$5,000 or imprisoned for not more than two years, or both. 

Conspiracy to Limit Transportation Facilities, Restrict Supply of Nec¬ 
essaries, etc., Forbidden; Punishment. 

Sec. 9. That any person who conspires, combines, agrees, or 


207 


arranges with, any other person (a) to limit the facilities for 
transporting, producing, manufacturing, supplying, storing, or 
dealing in any necessaries; (b) to restrict the supply of any 
necessaries; (c) to restrict the distribution of any necessaries; 
(d) to prevent, limit, or lessen the manufacture or production of 
any necessaries in order to enhance the price thereof shall, upon 
conviction thereof, be fined not exceeding $10,000 or be 
imprisoned for not more than two years, or both. 

President Authorized to Requisition Food, Feed, etc., for Army and 
Navy or Public Use Connected With Public Defense; Compensation 
Therefor; Determination of Value. 

Sec. 10. That the President is authorized, from time to time, 
to requisition foods, feeds, fuels, and other supplies necessary 
to the support of the Army or the maintenance of the Navy, or 
any other public use connected with the common defense, and 
to requisition, or otherwise provide, storage facilities for such 
supplies; and he shall ascertain and pay a just compensation 
therefor. If the compensation so determined be not satisfactory 
to the person entitled to receive the same, such person shall be 
paid seventy-five per centum of the amount so determined by 
the President, and shall be entitled to sue the United States to 
recover such further sum as, added to said seventy-five per 
centum will make up such amount as will be just compensation 
for such necessaries or storage space, and jurisdiction is hereby 
conferred on the United States District Courts to hear and 
determine all such controversies : Provided , That nothing in 
this section, or in the section that follows, shall be construed to 
require any natural person to furnish to the Government any 
necessaries held by him and reasonably required for consump¬ 
tion or use by himself and dependents, nor shall any person, 
firm, corporation, or association be required to furnish to the 
Government any seed necessary for the seeding of land owned, 
leased, or cultivated by them. 

Purchase, Storage and Sale Wheat, Flour, Meal, Beans, Potatoes; Pur¬ 
chase Price; Disposition of Moneys Received by United States from Sales. 

Sec. 11. That the President is authorized, from time to time, 
to purchase, to store, to provide storage facilities for, and to sell 
for cash at reasonable prices, wheat, flour, meal, beans, and 
potatoes: Provided, That if any minimum price shall have been 
theretofore fixed, pursuant to the provisions of section fourteen 
of this Act, then the price paid for any such articles so pur¬ 
chased shall not be less than such minimum price. Any moneys 
received by the United States from or in connection with the 
disposal by the United States of necessaries under this section 
may, in the discretion of the President, be used as a revolving 

208 


fund for further carrying out the purposes of this section. Any 
balance of such moneys not used as part of such revolving fund 
shall be covered into the Treasury as miscellaneous receipts. 

President Authorized to Requisition and Operate Factory, Packing 
House, Oil Pipe Line, Mine, or Other Plant, or Any Part Thereof, Where 
Necessaries Are Manufactured, Produced, etc.. When He Deems Neces* 
sary to Secure Adequate Supply of Necessaries for Army and Navy; 
Restoration of Factories, Mines, Plants to Owners; Compensation; How 
Determined; Review by Court; Disposition of Moneys Received from 
Operation of Factory, etc. 

Sec. 12. That whenever the President shall find it necessary 
to secure an adequate supply of necessaries for the support of 
the Army or the maintenance of the Navy, or for any other 
public use connected with the common defense, he is authorized 
to requisition and take over, for use or operation by the Govern¬ 
ment, any factory, packing house, oil pipe line, mine, or other 
plant, or any part thereof, in or through which any necessaries 
are or may be manufactured, produced, prepared, or mined, and 
to operate the same. Whenever the President shall determine 
that the further use or operation by the Government of any 
such factory, mine, or plant, or part thereof, is not essential for 
the national security or defense, the same shall be restored to 
the person entitled to the possession thereof. The United States 
shall make just compensation, to be determined by the Presi¬ 
dent, for the taking over, use, occupation, and operation by the 
Government of any such factory, mine, or plant, or part thereof. 
If the compensation so determined be unsatisfactory to the per¬ 
son entitled to receive the same, such person shall be paid 
seventy-five per centum of the amount so determined by the 
President, and shall be entitled to sue the United States to 
recover such further sum as, added to said seventy-five per 
centum, will make up such amount as will be just compensation, 
in the manner provided by section twenty-four, paragraph 
twenty, and section one hundred and forty-five of the Judicial 
Code. The President is authorized to prescribe such regulations 
as he may deem essential for carrying out the purposes of this 
section, including the operation of any such factory, mine, or 
plant, or part thereof, the purchase, sale, or other disposition of 
articles used, manufactured, produced, prepared, or mined 
therein, and the employment, control, and compensation of 
employees. Any moneys received by the United States from or 
in connection with the use or operation of any such factory, 
mine, or plant, or part thereof, may, in the discretion of the 
President, be used as a revolving fund for the purpose of the 
continued use or operation of any such factory, mine, or plant, 
or part thereof, and the accounts of each such factory, mine 
plant, or part thereof, shall be kept separate and distinct. Any 

209 


balance of such moneys not used as part of such revolving fund 
shall be paid into the Treasury as miscellaneous receipts. 

Requisitions by President Governing, Prohibiting, etc., Operations and 
Practices on Exchanges, Boards of Trade, etc.; Punishment for Viola* 
tion of Such Regulations. 

Sec. 13. That whenever the President finds it essential in 
order to prevent undue enhancement, depression, or fluctuation 
of prices of, or in order to prevent injurious speculation in, or 
in order to prevent unjust market manipulation or unfair and 
misleading market quotations of the prices of necessaries, here¬ 
after in this section called evil practices, he is authorized to 
prescribe such regulations governing, or may either wholly or 
partly prohibit, operations, practices, and transactions at, or, in, 
or under the rules of any exchange, board of trade, or similar 
institution or place of business as he may find essential in order 
to prevent, correct, or remove such evil practices. Such regula¬ 
tions may require all persons coming within their provisions to 
keep such records and statements of account, and may require 
such persons to make such returns, verified under oath or other¬ 
wise, as will fully and correctly disclose all transactions at, in, 
or on, or under the rules of any such exchange, board of trade, 
or similar institution or place of business, including the making, 
execution, settlement, and fulfillment thereof. He may also 
require all persons acting in the capacity of a clearing house, 
clearing association, or similar institution, for the purpose of 
clearing, settling, or adjusting transactions at, in, or on, or 
under the rules of any such exchange, board of trade, or 
similar institution or place of business, to keep such records 
and to make such returns as will fully and correctly disclose all 
facts in their possession relating to such transactions, and he may 
appoint agents to conduct the investigations necessary to enforce 
the provisions of this section and all rules and regulations made 
by him in pursuance thereof, and may fix and pay the compen¬ 
sation of such agents. Any person who willfully violates any 
regulation made pursuant to this section, or who knowingly 
engages in any operation, practice, or transaction prohibited 
pursuant to this section, or who willfully aids or abets any such 
violation or any such prohibited operation, practice, or trans¬ 
action, shall, upon conviction thereof, be punished by a fine not 
exceeding $10,000 or by imprisonment for not more than four 
years, or both. 

Production of Wheat, Stimulation of; Guaranteed Price for Wheat; 
Regulation Governing Guaranteed Price; Minimum of Guaranteed Price; 
Purchase by Government; Disposition of Proceeds from Such Sales. 

Sec. 14. That whenever the President shall find that an emer¬ 
gency exists requiring stimulation of the production of wheat 

210 


and that it is essential that the producers of wheat, produced 
within the United States, shall have the benefits of the guaranty 
provided for in this section, he is authorized, from time to time, 
seasonably and as far in advance of seeding time as practicable, 
to determine and fix and to give public notice of what, under 
specified conditions, is a reasonable guaranteed price for wheat, 
in order to assure such producers a reasonable profit. The Presi¬ 
dent shall thereupon fix such guaranteed price for each of the 
official grain standards for wheat as established under the United 
States grain standards Act, approved August eleventh, nineteen 
hundred and sixteen. The President shall from time to time 
establish and promulgate such regulations as he shall deem wise 
in connection with such guaranteed prices, and in particular gov¬ 
erning conditions of delivery and payment, and differences in 
price for the several standard grades in the principal primary 
markets of the United States, adopting number one northern 
spring or its equivalent at the principal interior primary mar¬ 
kets as the basis. Thereupon, the Government of the United 
States hereby guarantees every producer of wheat produced 
within the United States, that, upon compliance by him with the 
regulations prescribed, he shall receive for any wheat produced 
in reliance upon this guarantee within the period, not exceeding 
eighteen months, prescribed in the notice, a price not less than 
the guaranteed price therefor as fixed pursuant to this section. 
In such regulations the President shall prescribe the terms and 
conditions upon which any such producer shall be entitled to the 
benefits of such guaranty. The guaranteed prices for the sev¬ 
eral standard grades of wheat for the crop of nineteen hundred 
and eighteen, shall be based upon number one northern spring 
or its equivalent at not less than $2 per bushel at the principal 
interior primary markets. This guaranty shall not be dependent 
upon the action of the President under the first part of this sec¬ 
tion, but is hereby made absolute and shall be binding until May 
first, nineteen hundred and nineteen. When the President finds 
that the importation into the United States of any wheat pro¬ 
duced outside of the United States materially enhances or is 
likely materially to enhance the liabilities of the United States 
under guaranties of prices therefor made pursuant to this sec¬ 
tion, and ascertains what rate of duty, added to the then existing 
rate of duty on wheat and to the value of wheat at the time of 
importation, would be sufficient to bring the price thereof at 
which imported up to the price fixed therefor pursuant to the 
foregoing provisions of this section, he shall proclaim such facts, 
and thereafter there shall be levied, collected, and paid upon 
wheat when imported in addition to the then existing rate of 
duty, the rate of duty so ascertained; but in no case shall any 

211 


such rate of duty be fixed at an amount which will effect a reduc¬ 
tion of the rate of duty upon wheat under any then existing 
tariff law of the United States. For the purpose of making any 
guaranteed price effective under this section, or whenever he 
deems it essential in order to protect the Government of the 
United States against material enhancement of its liabilities 
arising out of any guaranty under this section, the President is 
authorized also, in his discretion, to purchase any wheat for 
which a guaranteed price shall be fixed under this section, and 
to hold, transport, or store it, or to sell, dispose of, and deliver 
the same to any citizen of the United States or to any Govern¬ 
ment engaged in war with any country with which the Govern¬ 
ment of the United States is or may be at war or to use the same 
as supplies for any department or agency of the Government of 
the United States. Any moneys received by the United States 
from or in connection with the sale or disposal of wheat under 
this section may, in the discretion of the President, be used as 
a revolving fund for further carrying out the purposes of this 
section. Any balance of such moneys not used as part of 
such revolving fund shall be covered into the Treasury as 
miscellaneous receipts. 

Foods, Fruits, Food Materials, etc., Not to Be Used in Production of 
Distilled Spirits for Beverage Purposes; Importation of Distilled Spirits 
Prohibited; President Authorized to Issue Further Restrictions, Limita¬ 
tions, etc., to Assure Adequate Supply of Food, etc.; Manufacture of 
Liquors Not Authorized Where Manufacture Prohibited. 

Sec. 15. That from and after thirty days from the date of the 
approval of this Act no foods, fruits, food materials, or feeds 
shall be used in the production of distilled spirits for beverage 
purposes: Provided , That under such rules, regulations, and 
bonds as the President may prescribe, such materials may be 
used in the production of distilled spirits exclusively for other 
than beverage purposes, or for the fortification of pure sweet 
wines as defined by the Act entitled “An Act to increase the 
revenue, and for other purposes,” approved September eighth, 
nineteen hundred and sixteen. Nor shall there be imported into 
the United States any distilled spirits. Whenever the President 
shall find that limitation, regulation, or prohibition of the use 
of foods, fruits, food materials, or feeds in the production of 
malt or vinous liquors for beverage purposes, or that reduction 
of the alcoholic content of any such malt or vinous liquor, is 
essential, in order to assure an adequate and continuous supply 
of food, or that the national security and defense will be sub¬ 
served thereby, he is authorized, from time to time, to prescribe 
and give public notice to the extent of the limitation, regulation, 
prohibition, or reduction so necessitated. Whenever such notice 


212 


shall have been given and shall remain unrevoked no person shall, 
after a reasonable time prescribed in such notice, use any foods, 
fruits, food materials, or feeds in the production of malt or 
vinous liquors, or import any such liquors except under license 
issued by the President and in compliance with rules and regula¬ 
tions determined by him governing the production and importa¬ 
tion of such liquors and the alcoholic content thereof. Any 
person who willfully violates the provisions of this section, or 
who shall use any foods, fruits, food materials, or feeds in the 
production of malt or vinous liquors, or who shall import any 
such liquors, without first obtaining a license so to do when a 
license is required under this section, or who shall violate any 
rule or regulation made under this section, shall be punished by a 
fine not- exceeding $5,000, or by imprisonment for not more than 
two years, or both: Provided further , That nothing in this sec¬ 
tion shall be construed to authorize the licensing of the manu¬ 
facture of vinous or malt liquors in any State, Territory, or 
the District of Columbia, or any civil subdivision thereof, where 
the manufacture of such vinous or malt liquor is prohibited. 

President Authorized to Take Over All Distilled Spirits in Bond or 
in Stock; Compensation to Be Paid Therefor; Determination of Same. 

Sec. 16. That the President is authorized and directed to 
commandeer any or all distilled spirits in bond or in stock at 
the date of the approval of this Act for redistillation, in so 
far as such redistillation may be necessary to meet the require¬ 
ments of the Government in the manufacture of munitions and 
other military and hospital supplies, or in so far as such redis¬ 
tillation would dispense with the necessity of utilizing products 
and materials suitable for foods and feeds in the future manu¬ 
facture of distilled spirits for the purpose herein enumerated. 
The President shall determine and pay a just compensation for 
the distilled spirits so commandeered; and if the compensation 
so determined be not satisfactory to the person entitled to receive 
the same, such person shall be paid seventy-five per centum of 
the amount so determined by the President and shall be entitled 
to sue the United States to recover such further sum as, added 
to said seventy-five per centum, will make up such amount as 
will be just compensation for such spirits, in the manner pro¬ 
vided by section twenty-four, paragraph twenty, and section one 
hundred and forty-five of the Judicial Code. 

Interference With Officers of the United States; Punishment. 

Sec. 17. That every person who willfully assaults, resists, 
impedes, or interferes with any officer, employee, or agent of the 
United States in the execution of any duty authorized to be per- 


213 


formed by or pursuant to this Act shall upon conviction thereof 
be fined not exceeding $1,000 or be imprisoned for not more than 
one year, or both. 

Appropriation for Rent; Expenses, etc. 

Sec. 18. That the sum of $2,500,000 is hereby appropriated, 
out of any moneys in the Treasury not otherwise appropriated, 
to be available until June thirtieth, nineteen hundred and 
eighteen, for the payment of such rent, the expense, including 
postage, of such printing and publications, the purchase of such 
material and equipment, and the employment of such persons and 
means, in the city of Washington and elsewhere, as the President 
may deem essential. 

Appropriation for Other Purposes; Reports to Be Filed With the 
Secretary of the Senate and the Clerk of the House of Representatives; 
Statements Subject to Public Inspection. 

Sec. 19. That for the purposes of this Act the sum of 
$150,000,000 is hereby appropriated, out of any moneys in the 
Treasury not otherwise appropriated, to be available during the 
time this Act is in effect: Provided, That no part of this appro¬ 
priation shall be expended for the purposes described in the pre¬ 
ceding section: Provided further, That itemized statements 
covering all purchases and disbursements under this and the 
preceding section shall be filed with the Secretary of the Senate 
and the Clerk of the House of Representatives on or before the 
twenty-fifth day of each month after the taking effect of this 
Act, covering the business of the preceding month, and said 
statements shall be subject to public inspection. 

Employes Not Exempt from Military Service. 

Sec. 20. That the employment of any person under the pro¬ 
visions of this Act shall not exempt any such person from mili¬ 
tary service under the provisions of the selective draft law 
approved May eighteenth, nineteen hundred and seventeen. 

Detailed Report of All Proceedings Required; What It Shall Contain. 

Sec. 21. The President shall cause a detailed report to be 
made to Congress on the first day of January each year of all 
proceedings had under this Act during the year preceding. 
Such report shall, in addition to other matters, contain an account 
of all persons appointed or employed, the salary or compensa¬ 
tion paid or allowed each, the aggregate amount of the different 
kinds of property purchased or requisitioned, the use and dispo¬ 
sition made of such property, and a statement of all receipts, 
payments, and expenditures, together with a statement showing 


214 


the general character, and estimated value of all property then 
on hand, and the aggregate amount and character of all claims 
against the United States growing out of this Act. 

Partial Invalidity of the Act Not to Affect Other Portions. 

Sec. 22. That if any clause, sentence, paragraph, or part of 
this Act shall for any reason be adjudged by any court of com¬ 
petent jurisdiction to be invalid, such judgment shall not affect, 
impair, or invalidate the remainder thereof, but shall be confined 
in its operation to the clause, sentence, paragraph, or part 
thereof, directly involved in the controversy in which such 
judgment shall have been rendered. 

Definitions. 

Sec. 23. That words used in this Act shall be construed to 
import the plural or the singular, as the case demands. The 
word “person,” wherever used in this Act, shall include indi¬ 
viduals, partnerships, associations, and corporations. When con¬ 
struing and enforcing the provisions of this Act, the act, omis¬ 
sion, or failure of any official, agent, or other person acting for 
or employed by any partnership, association, or corporation 
within the scope of his employment or office shall, in every case, 
also be deemed the act, omission, or failure of such partnership, 
association, or corporation as well as that of the person. 

Duration of the Law. 

Sec. 24. That the provisions of this Act shall cease to be in 
effect when the existing state of war between the United States 
and Germany shall have terminated, and the fact and date of 
such termination shall be ascertained and proclaimed by the 
President; but the termination of this Act shall not affect any 
act done, or any right or obligation accruing or accrued, or any 
suit or proceeding had or commenced in any civil case before 
the said termination pursuant to this Act; but all rights and 
liabilities under this Act arising before its termination shall con¬ 
tinue and may be enforced in the same manner as if the Act had 
not terminated. Any offense committed and all penalties, for¬ 
feitures, or liabilities incurred prior to such termination may be 
prosecuted or punished in the same manner and with the same 
effect as if this Act had not been terminated. 

President Authorized to Fix Price of Coal and Coke; Establish Rules 
for the Regulation of Production, Sale, Shipment, Distribution, Storage, 
etc., Among Dealers and Consumers Through the Agency, Federal Trade 
Commission; Authorized to Requisition Plant and Operate the Same; 
Compensation to Be Paid Therefor Fixed by Federal Trade Commission; 

215 


Basis for Determination of Price; Regulations and Authorized Employ¬ 
ment, Control and Compensation of Employes; Purchase by Govern¬ 
ment of Coal and Coke; Rule and Regulations Thereunder. Notice to 
Owners of Purchase by United States; Prices for Coal and Coke to Be 
Purchased by United States; Determination of Value; Disposition of 
Funds. Federal Trade Commission Directed to Make Inquiry Into Cost 
of Production of Coal and Coke; Books, Records, etc., to Be Produced; 
Authority to Fix Maximum Prices for Coal and Coke; How Determined; 
Shall Not Affect Prior Bona Fide Contracts; Punishment; Power of Gov¬ 
ernment to Purchase, Requisition, etc., Commodities at Price to Be 
Agreed Upon Not Affected. 

Sec. 25. That the President of the United States shall be, and 
he is hereby, authorized and empowered, whenever and wherever 
in his judgment necessary for the efficient prosecution of the 
war, to fix the price of coal and coke, wherever and whenever 
sold, either by producer or dealer, to establish rules for the regu¬ 
lation of and to regulate the method of production, sale, ship¬ 
ment, distribution, apportionment, or storage thereof among 
dealers and consumers, domestic or foreign; said authority and 
power may be exercised by him in each case through the agency 
of the Federal Trade Commission during the war or for such 
part of said time as in his judgment may be necessary. 

That if, in the opinion of the President, any such producer or 
dealer fails or neglects to conform to such prices or regulations, 
or to conduct his business efficiently under the regulations and 
control of the President as aforesaid, or conducts it in a manner 
prejudicial to the public interest, then the President is hereby 
authorized and empowered in every such case to requisition and 
take over the plant, business, and all appurtenances thereof 
belonging to such producer or dealer as a going concern, and to 
operate or cause the same to be operated in such manner and 
through such agency as he may direct during the period of the 
war or for such part of said time as in his judgment may be 
necessary. 

That any producer or dealer whose plant, business, and appur¬ 
tenances shall have been requisitioned or taken over by the Presi¬ 
dent shall be paid a just compensation for the use thereof during 
the period that the same may be requisitioned or taken over as 
aforesaid, which compensation the President shall fix or cause to 
be fixed by the Federal Trade Commission. 

That if the prices so fixed, or if, in the case of the taking over 
or requisitioning of the mines or business of any such producer 
or dealer the compensation therefor as determined by the pro¬ 
visions of this Act be not satisfactory to the person or persons 
entitled to receive the same, such person shall be paid seventy- 
five per centum of the amount so determined, and shall be 
entitled to sue the United States to recover such further sum as, 
added to said seventy-five per centum, will make up such amount 

216 


as will be just compensation in the manner provided by section 
twenty-four, paragraph twenty, and section one hundred and 
forty-five of the Judicial Code. 

While operating or causing to be operated any such plants or 
business, the President is authorized to prescribe such regula¬ 
tions as he may deem essential for the employment, control, and 
compensation of employees necessary to conduct the same. 

Or if the President of the United States shall be of the opinion 
that he can thereby better provide for the common defense, and 
whenever, in his judgment, it shall be necessary for the efficient 
prosecution of the war, then he is hereby authorized and empow¬ 
ered to require any or all producers of coal and coke, either in 
any special area or in any special coal fields, or in the entire 
United States, to sell their products only to the United States 
through an agency to be designated by the President, such 
agency to regulate the resale of such coal and coke, and the prices 
thereof, and to establish rules for the regulation of and to 
regulate the methods of production, shipment, distribution, 
apportionment, or storage thereof among dealers and consumers, 
domestic or foreign, and to make payment of the purchase price 
thereof to the producers thereof, or to the person or persons 
legally entitled to said payment. 

That within fifteen days after notice from the agency so desig¬ 
nated to any producer of coal and coke that his, or its, output is 
to be so purchased by the United States as hereinbefore described, 
such producer shall cease shipments of said product upon his 
own account and shall transmit to such agency all orders received 
and unfilled or partially unfilled, showing the exact extent to 
which shipments have been made thereon, and thereafter all 
shipments shall be made only on authority of the agency desig¬ 
nated by the President, and thereafter no such producer shall 
sell any of said products except to the United States through 
such agency, and the said agency alone is hereby authorized and 
empowered to purchase during the continuance of the require¬ 
ment the output of such producers. 

That the prices to be paid for such products so purchased shall 
be based upon a fair and just profit over and above the cost of 
production, including proper maintenance and depletion charges, 
the reasonableness of such profits and cost of production to be 
determined by the Federal Trade Commission, and if the prices 
fixed by the said commission of any such product purchased by 
the United States as hereinbefore described be unsatisfactory to 
the person or persons entitled to the same, such person or per¬ 
sons shall be paid seventy-five per centum of the amount so 
determined, and shall be entitled to sue the United States to 
recover such further sum as, added to said seventy-five per 


217 


centum, will make up such amount as will be just compensation 
in the manner provided by section twenty-four, paragraph 
twenty, and section one hundred and forty-five of the Judicial 
Code. 

All such products so sold to the United States shall be sold by 
the United States at such uniform prices, quality considered, as 
may be practicable and as may be determined by said agency to 
be just and fair. 

Any moneys received by the United States for the sale of any 
such coal and coke may, in the discretion of the President, be 
used as a revolving fund for further carrying out the purposes 
of this section. Any moneys not so used shall be covered into the 
Treasury as miscellaneous receipts. 

That when directed by the President, the Federal Trade Com¬ 
mission is hereby required to proceed to make full inquiry, giv¬ 
ing such notice as it may deem practicable, into the cost of pro¬ 
ducing under reasonably efficient management at the various 
places of production the following commodities, to wit, coal and 
coke. 

The books, correspondence, records and papers in any way 
referring to transactions of any kind relating to the mining, pro¬ 
duction, sale, or distribution of all mine operators or other per¬ 
sons whose coal and coke have or may become subject to this 
section, and the books, correspondence, records, and papers of 
any person applying for the purchase of coal and coke from the 
United States shall at all times fie subject to inspection by the 
said agency, and such person or persons shall promptly furnish 
said agency any data or information relating to the business of 
such person or persons which said agency may call for, and said 
agency is hereby authorized to procure the information in ref¬ 
erence to the business of such coal-mine operators and producers 
of coke and customers therefor in the manner provided for in 
sections six and nine of the Act of Congress approved September 
twenty-sixth, nineteen hundred and fourteen, entitled “An Act 
to create a Federal Trade Commission, to define its powers and 
duties, and for other purposes, ” and said agency is hereby 
authorized and empowered to exercise all the powers granted to 
the Federal Trade Commission by said Act for the carrying out 
of the purposes of this section. 

Having completed its inquiry respecting any commodity in any 
locality, it shall, if the President has decided to fix the prices at 
which any such commodity shall be sold by producers and deal¬ 
ers generally, fix and publish maximum prices for both pro¬ 
ducers of and dealers in any such commodity, which maximum 
prices shall be observed by all producers and dealers until further 
action thereon is taken by the commission. 


218 


! 

In fixing maximum prices for producers the commission shall 
allow the cost of production, including the expense of operation, 
maintenance, depreciation, and depletion, and shall add thereto 
a just and reasonable profit. 

In fixing such prices for dealers, the commission shall allow the 
cost to the dealer and shall add thereto a just and reasonable 
sum for his profit in the transaction. 

The maximum prices so fixed and published shall not be con¬ 
strued as invalidating any contract in which prices are fixed, 
made in good faith, prior to the establishment and publication 
of maximum prices by the commission. 

Whoever shall, with knowledge that the prices of any such 
commodity have been fixed as herein provided, ask, demand, or 
receive a higher price, or whoever shall, with knowledge that the 
regulations have been prescribed as herein provided, violate or 
refuse to conform to any of the same, shall, upon conviction, be 
punished by a fine of not more than $5,000, or by imprisonment 
for not more than two years, or both. Each independent trans¬ 
action shall constitute a separate offense. 

Nothing in this section shall be construed as restricting or 
modifying in any manner the right the Government of the United 
States may have in its own behalf or in behalf of any other Gov¬ 
ernment at war with Germany to purchase, requisition, or take 
over any such commodities for the equipment, maintenance, or 
support of armed forces at any price or upon any terms that may 
be agreed upon or otherwise lawfully determined. 

Storing, Destroying, Making Away With for the Purpose of Limiting 
the Supply of Necessaries by Persons Engaged in Interstate Commerce, 
Prohibited; Persons Excepted, Quantities Excepted. Sherman Anti-Trust 
Act Not Repealed. 

Sec. 26 . That any person carrying on or employed in com¬ 
merce among the several States, or with foreign nations, or with 
or in the Territories or other possessions of the United States in 
any article suitable for human food, fuel, or other necessaries of 
life, who, either in his individual capacity or as an officer, agent, 
or employee of a corporation or member of a partnership carry¬ 
ing on or employed in such trade, shall store, acquire or hold, 
or who shall destroy or make away with any such article for the 
purpose of limiting the supply thereof to the public or affecting 
the market price thereof in such commerce, whether temporarily 
or otherwise, shall be deemed guilty of a felony and, upon con¬ 
viction thereof, shall be punished by a fine of not more than 
$5,000 or by imprisonment for not more than two years, or both: 
Provided, That any storing or holding by any farmer, gardener, 
or other person of the products of any farm, garden, or other 
land cultivated by him shall not be deemed to be a storing or 


219 


holding within the meaning of this Act: Provided further, That 
farmers and fruit growers, co-operative and other exchanges, or 
societies of a similar character shall not be included within the 
provisions of this section: Provided further, That this section 
shall not be construed to prohibit the holding or accumulating of 
any such article by any such person in a quantity not in excess 
of the reasonable requirements of his business for a reasonable 
time or in a quantity reasonably required to furnish said articles 
produced in surplus quantities seasonally throughout the period 
of scant or no production. Nothing contained in this section 
shall be construed to repeal the Act entitled “An Act to protect 
trade and commerce against unlawful restraints and monopo¬ 
lies, ’ ’ approved July second, eighteen hundred and ninety, com¬ 
monly known as the Sherman Antitrust Act. 

President Authorized to Procure Nitrate of Soda for Increasing Agri- 
cultural Production and Dispose of Same; Appropriation Therefor; Reg* 
illations and Agencies; Disposition of Proceeds of Sales. 

Sec. 27. That the President is authorized to procure, or aid in 
procuring, such stocks of nitrate of soda as he may determine to 
be necessary, and find available, for increasing agricultural pro¬ 
duction during the calendar years nineteen hundred and seven¬ 
teen and eighteen, and to dispose of the same for cash at cost, 
including all expenses connected therewith. For carrying out 
the purposes of this section, there is hereby appropriated, out of 
any moneys in the Treasury not otherwise appropriated, avail¬ 
able immediately and until expended, the sum of $10,000,000, 
or so much thereof as may be necessary, and the President is 
authorized to make such regulations, and to use such means and 
agencies of the Government, as, in his discretion, he may deem 
best. The proceeds arising from the disposition of the nitrate 
of soda shall go into the Treasury as miscellaneous receipts. 


220 


PROCLAMATIONS 

ih* of tfyo ^nttefc States of ^Vnterira 

LICENSE OF WHEAT AND RYE ELEVATORS AND 
MILLERS 

Whereas, Under and by virtue of an Act of Congress entitled 
‘ ‘ An Act to provide further for the national security and defense 
by encouraging the production, conserving the supply and con¬ 
trolling the distribution of fuel, ’ ’ approved by the President on 
the 10th day of August, 1917, it is provided among other things 
as follows: 

“That, by reason of the existence of a state of war, it is 
essential to the national security and defense, for the suc¬ 
cessful prosecution of the war, and for the support and main¬ 
tenance of the Army and Navy, to assure an adequate 
supply and equitable distribution, and to facilitate the 
movement, of foods, feeds, fuel, including fuel oil and nat¬ 
ural gas, fertilizer and fertilizer ingredients, tools, utensils, 
implements, machinery, and equipment required for the 
actual production of foods, feeds, and fuel, hereafter in this 
Act called necessaries; to prevent, locally or generally, 
scarcity, monopolization, hoarding, injurious speculation, 
manipidations, and private controls, affecting such supply, 
distribution, and movement; and to establish and maintain 
governmental control of such necessaries during the war. 
For such purposes the instrumentalities, means, methods, 
powers, authorities, duties, obligations, and prohibitions 
hereinafter set forth are created, established, conferred, and 
prescribed. The President is authorized to make such regu¬ 
lations and to issue such orders as are essential effectively 
to carry out the provisions of this Act. ’ ’ 

And, Whereas, It is further provided in said Act as follows: 

“That, from time to time, whenever the President shall 
find it essential to license the importation, manufacture, 
storage, mining, or distribution of any necessaries, in order 
to carry into effect any of the purposes of this Act, and 
shall publicly so announce, no person shall, after a date 
fixed in the announcement, engage in or carry on any such 
business specified in the announcement of importation, man- 

221 


ufacture, storage, mining, or distribution of any necessaries 
as set forth in such announcement, unless he shall secure 
and hold a license issued pursuant to this section. The 
President is authorized to issue such licenses and to pre¬ 
scribe regulations for systems of accounts and auditing of 
accounts to be kept by licensees, submission of reports by 
them, with or without oath or affirmation and the entry and 
inspection by the President’s duly authorized agents of the 
places of business of licensees. ’ ’ 

And, Whereas, It is essential in order to carry into effect the 
provisions of the said Act, and in order to secure an adequate 
supply and equitable distribution, and to facilitate the movement 
of certain necessaries hereafter in this proclamation specified 
that the license powers conferred upon the President by said 
Act be at this time exercised, to the extent hereinafter set forth. 

Now, therefore, I, Woodrow Wilson, President of the United 
States of America, by virtue of the powers conferred upon me by 
said Act of Congress, hereby find and determine and by this 
proclamation do announce that it is essential in order to carry 
into effect the purposes of said Act, to license the storage and 
distribution of Wheat and rye and the manufacture, storage, and 
distribution of all products derived therefrom to the extent here¬ 
inafter specified. 

All persons, firms, corporations and associations engaged in 
the business of either storing or distributing wheat or rye, as 
owners, lessees or operators of warehouses or elevators, and all 
persons, firms, corporations and associations engaged in the busi¬ 
ness of manufacturing any products derived from wheat or 
rye (except those operating mills and manufacturing plants of a 
daily capacity of one hundred barrels or less, and farmers and 
co-operative association of farmers) are hereby required to 
secure on or before September 1st, 1917, a license, which license 
will be issued under such rules and regulations governing the 
conduct of the business as may be prescribed. 

Applications for licenses must be made to the United States 
Food Administrator, Washington, D. C., upon forms prepared 
by him for that purpose. 

Any person, firm, corporation or association, other than those 
hereinbefore excepted, who shall engage in, or carry on the busi¬ 
ness of either storing or distributing wheat or rye as owners, 
lessees or operators of warehouses or elevators, or manufacturing 
any products derived from wheat or rye after September 1st, 
1917, without first securing such license, will be liable to the 
penalties prescribed by said Act of Congress. 

Executed by the President, August 14, 1917. 


222 


LICENSE OF IMPORTERS, MANUFACTURERS AND 
REFINERS OF SUGAR, SUGAR SYRUPS AND 
MOLASSES 

Whereas, Under and by virtue of an Act of Congress entitled 

An Act to provide further for the national security and defense 
by encouraging the production, conserving the supply and con¬ 
trolling the distribution of food products and fuel,” approved 
by the President on the 10th day of August, 1917, it is provided 
among other things as follows: 

“That, by reason of the existence of a state of war, it is 
essential to the national security and defense, for the suc¬ 
cessful prosecution of the war, and for the support and 
maintenance of the Army and Navy, to assure an adequate 
supply and equitable distribution, and to facilitate the 
movement, of foods, feeds, fuel, including fuel oil and nat¬ 
ural gas, fertilizer and fertilizer ingredients, tools, utensils, 
implements, machinery, and equipment required for the 
actual production of foods, feeds, and fuel, hereafter in this 
Act called necessaries ; to prevent, locally or generally, 
scarcity, monopolization, hoarding, injurious speculation, 
manipulations, and private controls, affecting such supply, 
distribution, and movement; and to establish and maintain 
governmental control of such necessaries during the war. 
For such purposes the instrumentalities, means, methods, 
powers, authorities, duties, obligations, and prohibitions 
hereinafter set forth are created, established, conferred, and 
prescribed. The President is authorized to make such regu¬ 
lations and to issue such orders as are essential effectively 
to carry out the provisions of this Act. ’ ’ 

And, Whereas, It is further provided in said Act as follows: 

“That from time to time, whenever the President shall 
find it essential to license the importation, manufacture, 
storage, mining, or distribution, of any necessaries, in order 
to carry into effect any of the purposes of this Act, and 
shall publicly so announce, no person shall, after date fixed 
in the announcement, engage in or carry on any such busi¬ 
ness specified in the announcement of importation, manu¬ 
facture, storage, mining, or distribution of any necessaries 
as set forth in such announcement, unless he shall secure 
and hold a license issued pursuant to this section. The 
President is authorized to issue such licenses and to pre¬ 
scribe regulations for the issuance of licenses and require¬ 
ments for systems of accounts and auditing of accounts to 

223 


be kept by licensees, submission of reports by them, with or 
without oath or affirmation and the entry and inspection by 
the President’s duly authorized agents of the places of 
business of licensees . 9 9 

And, Whereas, It is essential in order to carry into effect the 
provisions of the said Act, and in order to secure an adequate 
supply and equitable distribution, and to facilitate the move¬ 
ment of certain necessaries hereafter in this proclamation speci¬ 
fied that the license powers conferred upon the President by said 
Act be at this time exercised, to the extent hereinafter set forth. 

Now, Therefore, I, Woodrow Wilson, President of the 
United States of America, by virtue of the powers conferred 
upon me by said Act of Congress, hereby find and determine and 
by this proclamation do announce that it is essential in order to 
carry into effect the purposes of said Act, to license the importa¬ 
tion, manufacture and refining of sugar, sugar syrups and 
molasses, to the extent hereinafter specified. 

All persons, firms, corporations and associations engaged in 
the business either of importing sugar, or manufacturing sugar 
from sugar cane or beets, or of refining sugar or of manufac¬ 
turing sugar syrups or molasses (except those specifically 
exempted by said Act of Congress), are hereby required to 
secure on or before October 1, 1917, a license, which license will 
be issued under such rules and regulations governing the conduct 
of the business as may be prescribed. 

Applications for licenses must be made to the United States 
Food Administrator, Washington, D. C., upon forms prepared 
by him for that purpose. 

Any person, firm, corporation or association, other than those 
hereinbefore excepted, who shall engage in or carry on the busi¬ 
ness either of importing sugar, manufacturing sugar, or refining 
sugar, or of manufacturing sugar syrups or molasses after Octo¬ 
ber 1, 1917, without first securing such license, will be liable to 
the penalties prescribed by said Act of Congress. 

Executed by the President, September 7, 1917. 

LICENSE OF COMMODITIES 

Whereas, Under and by virtue of an Act of Congress entitled 
“An Act to provide further for the national security and defense 
by encouraging the production, conserving the supply and con¬ 
trolling the distribution of food products and fuel,” approved 
by the President on the 10th day of August, 1917, it is provided 
among other things as follows: 

“That, by reason of the existence of a state of war, it is 
essential to the national security and defense, for the suc- 

224 


cessful prosecution of the war, and for the support and 
maintenance of the Army and Navy, to assure an adequate 
supply and equitable distribution, and to facilitate the 
movement of foods, feeds, fuel, including fuel oil and nat¬ 
ural gas, and fertilizer and fertilizer ingredients, tools, 
utensils, implements, machinery, and equipment required 
for the actual production of foods, feeds, and fuel, hereafter 
in this Act called necessaries ; to prevent, locally or gener¬ 
ally, scarcity, monopolization, hoarding, injurious specula¬ 
tion, manipulations, and private controls, affecting such 
supply, distribution, and movement; and to establish and 
maintain governmental control of such necessaries during 
the war. For such purposes the instrumentalities, means, 
methods, powers, authorities, duties, obligations, and pro¬ 
hibitions hereinafter set forth are created, established, con¬ 
ferred and prescribed. The President is authorized to make 
such regulations and to issue such orders as are essential 
effectively to carry out the provisions of this Act.” 

And, Whereas, It is further provided in said Act as follows: 

‘‘That, from time to time, whenever the President shall 
find it essential to license the importation, manufacture, 
storage, mining or distribution, of any necessaries, in order 
to carry into effect any of the purposes of this Act, and 
shall publicly so announce, no person shall, after a date 
fixed in the announcement, engage in or carry on any such 
business specified in the announcement of importation, man¬ 
ufacture, storage, mining, or distribution of any necessaries 
as set forth in such announcement, unless he shall secure 
and hold a license issued pursuant to this section. The 
President is authorized to issue such licenses and to prescribe 
regulations for the issuance of licenses and requirements 
for systems of accounts and auditing of accounts to be kept 
by licensees, submission of reports by them, with or without 
oath or affirmation, and the entry and inspection by the 
President’s duly authorized agents of the places of business 
of licensees. ’ ’ 

And, Whereas, It is essential in order to carry into effect the 
provisions of the said Act, that the powers conferred upon the 
President by said Act be at this time exercised, to the extent 
hereinafter set forth, 

Now, Therefore, I, Woodrow Wilson, President of the 
United States of America, by virtue of the powers conferred 
upon me by said Act of Congress, hereby find and determine and 
by this proclamation do announce that it is essential, in order to 
carry into effect the purposes of said Act, to license the impor- 

225 


tation, manufacture, storage and distribution of necessaries, to 

THE EXTENT HEREINAFTER SPECIFIED. 

All persons, firms, corporations and associations engaged in the 
business either of (1) operating cold storage warehouses (a cold 
storage warehouse, for the purposes of this proclamation, being 
defined as any place artificially or mechanically cooled to or 
below a temperature of 45 degrees above zero Fahrenheit, in 
which food products are placed and held for thirty days or 
more), (2) operating elevators, warehouses or other places for 
the storage of corn, oats, barley, beans, rice, cotton seed, cotton¬ 
seed cake, cottonseed meal or peanut meal, or (3) importing, 
manufacturing (including milling, mixing or packing), or 
distributing (including buying and selling) any of the follow¬ 
ing commodities: 

Wheat, wheat flour, rye or rye flour, 

Barley or barley flour, 

Oats, oatmeal or rolled oats, 

Corn, corn grits, cornmeal, hominy, corn flour, starch from 
corn, corn oil, corn syrup or glucose, 

Rice, rice flour, 

Dried beans, 

Pea seed or dried peas, 

Cotton seed, cottonseed oil, cottonseed cake or cottonseed meal, 
Peanut oil or peanut meal, 

Soya bean oil, soya bean meal, palm oil or copra oil, 
Oleomargarine, lard, lard substitutes, oleo oil or cooking fats, 
Milk, butter or cheese, 

Condensed, evaporated or powdered milk, 

Fresh, canned or cured beef, pork or mutton, 

Poultry or eggs, 

Fresh or frozen fish, 

Fresh fruits or vegetables. 

Canned: Peas, dried beans, tomatoes, corn, salmon or 
sardines. 

Dried: Prunes, apples, peaches or raisins. 

Sugar, syrups or molasses. 

Excepting, however, 

(1) Operators of elevators or warehouses handling wheat or 
rye, and manufacturers of the derivative products of wheat or 
rye, who have already been licensed, 

(2) Importers, manufacturers and refiners of sugar, and man¬ 
ufacturers of sugar syrups and molasses, who have already been 
licensed, 


226 


(3) Retailers whose gross sales of food commodities do not 
exceed $100,000.00 per annum, 

(4) Common carriers, 

(5) Farmers, gardeners, co-operative associations of farmers 
or gardeners, including live stock farmers, and other persons 
with respect to the products of any farm, garden or other land 
owned, leased or cultivated by them, 

(6) Fishermen whose business does not extend beyond primary 
consignment, 

(7) Those dealing in any of the above commodities on any 
exchange, board of trade or similar institution as defined by 
Section 13 of the Act of August 10, 1917, to the extent of their 
dealings on such exchange or board of trade, 

(8) Millers of corn, oats, barley, wheat, rye or rice operating 
only plants of a daily capacity of less than seventy-five barrels, 

(9) Canners of peas, dried beans, corn, tomatoes, salmon or 
sardines whose gross production does not exceed 5,000 cases per 
annum, 

(10) Persons slaughtering, packing and distributing fresh, 
canned or cured beef, pork or mutton, whose gross sales of such 
commodities do not'exceed $100,000.00 per annum, 

(11) Operators of poultry or egg packing plants, whose gross 
sales do not exceed $50,000.00 per annum, 

(12) Manufacturers of maple syrup, maple sugar and maple 
compounds, 

(13) Ginners, buyers, agents, dealers or other handlers of cot¬ 
ton seed who handle yearly, between September 1st and August 
31st, less than one hundred and fifty tons of cotton seed, 

are hereby required to secure on or before November 1, 1917, a 
license, which license will be issued under such rules and regula¬ 
tions governing the conduct of the business as may be prescribed. 

Application for license must be made to the United States 
Food Administration, Washington, D. C., Law Department— 
License Division, on forms prepared by it for that purpose, which 
may be secured on request. 

Any person, firm, corporation or association other than those 
hereinbefore excepted, who shall engage in or carry on any busi¬ 
ness hereinbefore specified after November 1, 1917, without first 
securing such license will be liable to the penalty prescribed by 
said Act of Congress. 

Executed by the President, October 8, 1917. 

Note: See Proclamation of May 14, 1918, which includes 
some businesses exempted herein. 


227 


LICENSING BAKERS 

Whereas, Under and by virtue of an Act of Congress entitled 
“An Act to provide further for the national security and defense 
by encouraging the production, conserving the supply, and con¬ 
trolling the distribution of food products and fuel,” approved 
by the President on the 10th day of August, 1917, it is provided 
among other things as follows: 

“That, by reason of the existence of a state of war, it is 
essential to the national security and defense, for the suc¬ 
cessful prosecution of the war, and for the support and 
maintenance of the Army and Navy, to assure an adequate 
supply and equitable distribution, and to facilitate the 
movement, of foods, feeds, fuel, including fuel oil and nat¬ 
ural gas, and fertilizer and fertilizer ingredients, tools, 
utensils, implements, machinery, and equipment required 
for the actual production of foods, feeds, and fuel, hereafter 
in this Act called necessaries; to prevent, locally or gener¬ 
ally, scarcity, monopolization, hoarding, injurious specula¬ 
tion, manipulations, and private controls, affecting such 
supply, distribution, and movement; and to establish and 
maintain governmental control of such necessaries during 
the war. For such purposes the instrumentalities, means, 
methods, powers, authorities, duties, obligations, and pro¬ 
hibitions hereinafter set forth are created, established, con¬ 
ferred, and prescribed. The President is authorized to make 
such regulations and to issue such orders as are essential 
effectively to carry out the provisions of this Act. ’ ’ 

And, Whereas, It is further provided in said Act as follows: 

“That, from time to time, whenever the President shall 
find it essential to license the importation, manufacture, 
storage, mining, or distribution of any necessaries, in order 
to carry into effect any of the purposes of this Act, and 
shall publicly so announce, no person shall, after a date 
fixed in the announcement, engage in or Carry on any such 
business specified in the announcement of importation, man¬ 
ufacture, storage, mining, or distribution of any necessaries 
as set forth in such announcement, unless he shall secure and 
hold a license issued pursuant to this section. The President 
is authorized to issue such licenses and to prescribe regula¬ 
tions for the issuance of licenses and requirements for sys¬ 
tems of accounts and auditing of accounts to be kept by 
licensees, submission of reports by them, with or without 
oath or affirmatioin, and the entry and inspection by the 
President’s duly authorized agents of the places of business 
of licensees. ’ ’ 


228 


And Whereas, It is essential, in order to carry into effect the 
provisions of the said Act, that the powers conferred upon the 
President by said Act be at this time exercised, to the extent 
hereinafter set forth. 

Now, Therefore, I, Woodrow Wilson, President of the 
United States of America, by virtue of the powers conferred 
upon me by said Act of Congress, hereby find and determine and 
by this proclamation do announce that it is essential, in order to 
carry into effect the purposes of said Act, to license the manu¬ 
facture of necessaries, to the extent hereinafter specified. 

All persons, firms, corporations and association, who manufac¬ 
ture for sale bread in any form, cake, crackers, biscuits, pastry 
or other bakery products (excepting, however, those whose con¬ 
sumption of any flour and meal in the manufacture of such 
products is, in the aggregate, less than ten barrels a month), are 
hereby required to procure a license on or before December 10, 
1917. This includes hotels, restaurants, other public eating 
places, and clubs, who serve bread or other bakery products of 
their own baking. 

Application for license must be made to the United States 
Pood Administrator, Washington, D. C., Law Department— 
License Division, on forms prepared by it for that purpose, 
which may be obtained on request. 

Any person, firm, corporation or association, other than those 
hereinbefore excepted, who shall engage in or carry on any busi¬ 
ness hereinbefore specified after December 10, 1917, without first 
procuring such license, will be liable to the penalty prescribed by 
said Act of Congress. 

Executed by the President, November 7, 1917. 

LIMITING ALCOHOLIC CONTENT OF MALT LIQUORS 

Whereas, Under and by virtue of an Act of Congress entitled 
“An Act to provide further for the national security and defense 
by encouraging the production, conserving the supply, and con¬ 
trolling the distribution of food products and fuel,” approved 
by the President on August 10, 1917, it is provided in Section 15, 
among other things, as follows: 

“Whenever the President shall find that limitation, regu¬ 
lation, or prohibition of the use of foods, fruits, food mate¬ 
rials or feeds in the production of malt or vinous liquors for 
beverage purposes, or that reduction of the alcoholic content 
of any such malt or vinous liquor, is essential, in order to 
assure an adequate and continuous supply of food, or that 
the national security and defense will be subserved thereby, 
he is authorized, from time to time, to prescribe and give 

229 


public notice of the extent of the limitation, regulation, 
prohibition, or reduction so necessitated. Whenever such 
notice shall have been given and shall remain unrevoked, 
no person shall, after a reasonable time prescribed in such 
notice, use any foods, fruits, food materials, or feeds in the 
production of malt or vinous liquors, or import any such 
liquors except under license issued by the President and in 
compliance with rules and regulations determined by him 
governing the production and importation of such liquors 
and the alcoholic content thereof”; 

Now, Therefore, I, Woodrow Wilson, President of the United 
States of America, by virtue of the powers conferred on me by 
said Act of Congress, do hereby find and determine that the 
national security and defense will be subserved by the limitation 
of the amount of foods, fruits, food materials and feeds used 
in the production of malt liquor, and by reduction of the alcoholic 
content of malt liquor produced in the United States. And by 
this proclamation I prescribe and give public notice that on and 
after January 1, 1918, the total amount of foods, fruits, food 
materials and feeds used by any person in the production of 
malt liquor shall not exceed seventy per cent (70%) of the 
average consumption of any such foods, fruits, food materials 
or feeds in the production of such malt liquor by such person 
during the period from January 1, 1917, to January 1, 1918, 
the unit of time to be fixed by regulation; and that on and after 
January 1, 1918, no malt liquor except ale and porter shall be 
produced in the United States containing more than two and 
three-quarters per cent (2.75%) of alcohol by weight. 

No person shall, after January 1, 1918, use any foods, fruits, 
food materials or feeds in the production of malt liquor, unless 
he secures a license so to do, to be issued by the Commissioner 
of Internal Revenue, and complies with rules and regulations to 
be hereafter promulgated governing the production of such 
liquor and the alcoholic content thereof; and no person shall 
import any such liquor except under license to be issued by the 
Division of Customs, Treasury Department, and in compliance 
with any rules and regulations governing the importation of such 
liquors which may be promulgated. 

Executed by the President, December 8, 1917. 

LICENSE OF AMMONIA INDUSTRY 

Whereas, Under and by virtue of an Act of Congress entitled 
“An Act to provide further for the national security and defense 
by encouraging the production, conserving the supply, and con- 

230 


trolling the distribution of food products and fuel,” approved 
by the President on the 10th day of August, 1917, it is provided 
among other things, as follows: 

4 ‘That by reason of the existence of a state of war, it is 
essential to the national security and defense, for the 
successful prosecution of the war, and for the support and 
maintenance of the Army and Navy, to assure an adequate 
supply and equitable distribution, and to facilitate the 
movement of foods, feeds, fuel, including fuel oil and natural 
gas, and fertilizer and fertilizer ingredients, tools, utensils, 
implements, machinery, and equipment required for the 
actual production of foods, feeds, and fuel, hereafter in this 
Act called necessaries; to prevent, locally or generally, 
scarcity, monopolization, hoarding, injurious speculation, 
manipulations, and private controls, affecting such supply, 
distribution, and movement; and to establish and maintain 
governmental control of such necessaries during the war. 
For such purposes the instrumentalities, means, methods, 
powers, authorities, duties, obligations, and prohibitions 
hereinafter set forth are created, established, conferred, and 
prescribed. The President is authorized to make such regu¬ 
lations and to issue such orders as are essential effectively 
to carry out the provisions of this Act.” 

And, Whereas, It is further provided in said Act as follows: 

“That, from time to time, whenever the President shall 
find it essential to license the importation, manufacture, 
storage, mining, or distribution of any necessaries, in order 
to carry into effect any of the purposes of this Act, and 
shall publicly so announce, no person shall, after a date 
fixed in the announcement, engage in or carry on any such 
business specified in the announcement of importation, 
manufacture, storage, mining, or distribution of any neces¬ 
saries as set forth in such announcement, unless he shall 
secure and hold a license issued pursuant to this section. The 
President is authorized to issue such licenses and to prescribe 
regulations for the issuance of licenses and requirements for 
systems of accounts and auditing of accounts to be kept by 
licensees, submission of reports by them, with or without oath 
or affirmation, and the entry and inspection by the President’s 
duly authorized agents of the places of business of licensees. ’ ’ 

And Whereas, It is essential in order to carry into effect the 
provisions of the said Act, and in order to secure an adequate 
supply and equitable distribution, and to facilitate the movement 
of certain necessaries hereafter in this proclamation specified that 


231 


the license powers conferred upon the President by said Act be 
at this time exercised to the extent hereinafter set forth. 

Now, Therefore, I, Woodrow Wilson, President of the United 
States of America, by virtue of the powers conferred on me by 
said Act of Congress, hereby find and determine and by this 
proclamation do announce that it is essential in order to carry 
into effect the purposes of said Act, to license the importation, 
manufacture, storage and distribution of the following neces¬ 
saries: ammonia, ammoniacal liquors, and ammonium sulphate 
from whatever source produced. 

All persons, firms, corporations and associations (except those 
specifically exempted by said Act of Congress) engaged in the 
business of importing, manufacturing, storing or distributing 
ammonia, ammoniacal liquors or ammonium sulphate from what¬ 
ever source produced, are hereby required to secure a license on 
or before January 21, 1918, which will be issued under such 
rules and regulations governing the conduct of the business as 
may be prescribed. 

The Secretary of Agriculture shall supervise, direct and carry 
into effect the provisions of said Act, and the powers and 
authority thereby given to the President as far as the same apply 
to ammonia, ammoniacal liquors and ammonium sulphate from 
whatever source produced, and to any and all practices, pro¬ 
cedure and regulations applicable thereto, authorized or required 
under the provisions of said Act, and in this behalf he shall do 
and perform such acts and things as may be authorized or 
required of him from time to time by direction of the President 
and under such rules and regulations as may be prescribed by the 
President from time to time. All departments and agencies of 
the Government are hereby directed to co-operate with the Secre¬ 
tary of Agriculture in the performance of the duties hereinbefore 
set forth. 

Applications for licenses must be made to the Law Department 
—License Division, United States Food Administration, Wash¬ 
ington, D. C., upon forms prepared for that purpose. 

Any person, firm, corporation or association, other than those 
hereinbefore excepted, who shall engage in the business of 
importing, manufacturing, storing or distributing ammonia, 
ammoniacal liquors or ammonium sulphate from whatever source 
produced after the date aforesaid, without first securing such 
license, will be liable to the penalties prescribed by said Act of 
Congress. 

Executed by the President, January 3, 1918. 


232 


LICENSING THE IMPORTATION, MANUFACTURE, 
STORAGE, AND DISTRIBUTION OF FEEDS, AND 
CERTAIN OTHER FOOD COMMODITIES 

Whereas, Under and by virtue of an Act of Congress entitled 

An Act to provide further for the national security and defense 
by encouraging the production, conserving the supply, and con¬ 
trolling the distribution of food products and fuel, ’ ’ approved 
by the President on the 10th day of August, 1917, it is provided 
among other things, as follows: 

“That by reason of the existence of a state of war, it is 
essential to the national security and defense, for the 
successful prosecution of the war, and for the support and 
maintenance of the Army and Navy, to assure an adequate 
supply and equitable distribution, and to facilitate the 
movement of foods, feeds, fuel, including fuel oil and natural 
gas, and fertilizer and fertilizer ingredients, tools, utensils, 
implements, machinery, and equipment required for the 
actual production of foods, feeds, and fuel, hereafter in this 
Act called necessaries; to prevent, locally or generally, 
scarcity, monopolization, hoarding, injurious speculation, 
manipulations, and private controls, affecting such supply, 
distribution, and movement; and to establish and maintain 
governmental control of such necessaries during the war. 
For such purposes the instrumentalities, means, methods, 
powers, authorities, duties, obligations, and prohibitions 
hereinafter set forth are created, established, conferred, and 
prescribed. The President is authorized to make such regu¬ 
lations and to issue such orders as are essential effectively 
to carry out the provisions of this Act.” 

And, Whereas, It is further provided in said Act as follows: 

“That, from time to time, whenever the President shall 
find it essential to license the importation, manufacture, 
storage, mining, or distribution of any necessaries, in order 
to carry into effect any of the purposes of this Act, and 
shall publicly so announce, no person shall, after a date 
fixed in the announcement, engage in or carry on any such 
business specified in the announcement of importation, 
manufacture, storage, mining, or distribution of any neces¬ 
saries as set forth in such announcement, unless he shall 
secure and hold a license issued pursuant to this section. The 
President is authorized to issue such licenses and to prescribe 
regulations for the issuance of licenses and requirements for 
systems of accounts and auditing of accounts to be kept by 

233 


licensees, submission of reports by them, with or without oath 
or affirmation, and the entry and inspection by the President’s 
duly authorized agents of the places of business of licensees . 9 9 

And Whereas, It is essential in order to carry into effect the 
provisions of the said Act, that the powers conferred upon the 
President by said Act be at this time exercised, to the extent 
hereinafter set forth. 


Now, Therefore, I, Woodrow Wilson, President of the United 
States of America, by virtue of the powers conferred upon me by 
said Act of Congress, hereby find and determine and by this 
proclamation do announce that it is essential, in order to carry 
into effect the purposes of said Act, to license the importation, 
manufacture, storage, and distribution of feeds, and certain other 
food commodities, to the extent hereinafter specified. 


(1) All persons, firms, corporations and associations engaged 
in the business of 

(a) Importing, manufacturing (including mixing and 
processing of all kinds), storing or distributing any 
commercial mixed feeds (including dairy feeds, horse 
and mule feeds, stock feeds, hog feeds, and poultry 
feeds) ; 


(b) Manufacturing feeds from any of the following commod¬ 
ities or importing, storing or distributing any of the 
following commodities as feeds or feed ingredients: 


buckwheat 

kaffir 

milo 

feterita 

broom corn 

cane seed 

spelt 

emmer 

millet 

sunflower seed 

grain and seed screenings 

lentils 

linseed oil cake 


linseed oil meal 

beans 

peas 

dried brewers’ grains 
dried distillers ’ grains 
dried yeast grains 
malt sprouts 
baled hay 
baled alfalfa 
baled straw 

animal or fish products 
or by-products 
tankage; 


(c) Importing, manufacturing, storing or distributing as 
feed any products or by-products of any of the 
following commodities except products or by-products 
whose importation, manufacture, storage or distribu- 


234 


tion is already covered by a license held by any such 
person, firm, corporation or association: 


shelled corn 

velvet beans 

ear corn 

peas 

oats 

peanuts 

barley 

copra 

wheat 

palm nut 

rye 

palm kernel 

buckwheat 

sugar beets 

sorghum grains 

sugar cane 

rice 

hay 

grain and seed screenings 

alfalfa 

soya beans 

straw; 


(2) All persons, firms, corporations and associations engaged 
in the business of malting barley, or other grains, or in the 
business of storing or distributing malt, except brewers of malt 
liquor who do not malt their own grain; 

(3) All persons, firms, corporations and associations engaged 
in the business of importing, manufacturing or distributing 
copra, palm kernels, palm kernel oil, and peanuts; 

(4) All salt water fishermen not already licensed by the 
United States Food Administration, whether fishing independ¬ 
ently or on shares, engaged at any period of the year, in the 
commercial distribution, including catching and selling, of any 
or all varieties of salt water fish, including menhaden and of 
shellfish and crustaceans; 

(5) All persons, firms, corporations and associations engaged 
in the business of canning peas, dried beans, corn, tomatoes, 
salmon or sardines not already licened, whose gross production 
is more than five hundred (500) cases per annum, except home 
canners and bona fide boys’ and girls’ canning clubs recognized 
by the Departments of Agriculture of the several States in the 
United States; 

(6) All persons, firms, corporations and associations not 
already licensed, engaged in the business of manufacturing 
tomato soup, tomato catsup, or other tomato products; 

(7) All persons, firms, corporations and associations engaged 
in the business of manufacturing alimentary paste; 

(8) All persons, firms, corporations and associations, not 
already licensed, engaged in the business of manufacturing any 
products derived from wheat or rye; Excepting, however, 

235 


(1) Retailers whose gross sales of food commodities do 
not exceed One Hundred Thousand Dollars ($100,000) per 
annum; 

(2) Common carriers as to operations necessary to the 
business of common carriage; 

(3) Farmers, gardeners, co-operative associations of 
farmers or gardeners, including live stock farmers, and other 
persons with respect to the products of any farm, garden 
or other land owned, leased or cultivated by them; 

Are hereby required to secure on or before February 15, 1918, 
a license, which license will be issued under such rules and regu¬ 
lations governing the conduct of the business as may be pre¬ 
scribed. 

All persons hereby made subject to license must apply, speci¬ 
fying the kind of license desired, to the United States Food 
Administration, License Division, Washington, D. C., on forms 
prepared by it for that purpose which may be secured on request. 

Any person, firm, corporation or association other than those 
hereinbefore excepted, who shall engage in or carry on any 
business hereinbefore specified after February 15, 1918, without 
first securing such license, will be liaible to the penalty prescribed 
by said Act of Congress. 

Executed by the President, January 10, 1918. 

LICENSING BAKERS AND IMPORTERS OR DISTRIB¬ 
UTORS OF GREEN COFFEE 

Whereas, Under and by virtue of an Act of Congress entitled 
‘ ‘ An Act to provide further for the national security and defense 
by encouraging the production, conserving the supply, and con¬ 
trolling the distribution of food products and fuel, ’ ’ approved by 
the President on the 10th day of August, 1917, it is provided 
among other things, as follows: 

“That by reason of the existence of a state of war, it is 
essential to the national security and defense, for the 
successful prosecution of the war, and for the support and 
maintenance of the Army and Navy, to assure an adequate 
supply and equitable distribution, and to facilitate the 
movement of foods, feeds, fuel, including fuel oil and natural 
gas, and fertilizer and fertilizer ingredients, tools, utensils, 
implements, machinery, and equipment required for the 
actual production of foods, feeds, and fuel, hereafter in this 
Act called necessaries; to prevent, locally or generally, 
scarcity, monopolization, hoarding, injurious speculation, 
manipulations, and private controls, affecting such supply, 

23 G 


distribution, and movement; and to establish and maintain 
governmental control of such necessaries during the war. 
For such purposes the instrumentalities, means, methods, 
powers, authorities, duties, obligations, and prohibitions 
hereinafter set forth are created, established, conferred, and 
prescribed. The President is authorized to make such regu¬ 
lations and to issue such orders as are essential effectively 
to carry out the provisions of this Act.” 

And, Whereas, It is further provided in said Act as follows: 

'‘That, from time to time, whenever the President shall 
find it essential to license the importation, manufacture, 
storage, mining, or distribution of any necessaries, in order 
to carry into effect any of the purposes of this Act, and 
shall publicly so announce, no person shall, after a date 
fixed in the announcement, engage in or carry on any such 
business specified in the announcement of importation, 
manufacture, storage, mining, or distribution of any neces¬ 
saries as set forth in such announcement, unless he shall 
secure and hold a license issued pursuant to this section. The 
President is authorized to issue such licenses and to prescribe 
regulations for the issuance of licenses and requirements for 
systems of accounts and auditing of accounts to be kept by 
licensees, submission of reports by them, with or without oath 
or affirmation, and the entry and inspection by the President’s 
duly authorized agents of the places of business of licensees. ’ ’ 

And Whereas, It is essential in order to carry into effect the 
provisions of the said Act, that the powers conferred upon the 
President by said Act be at this time exercised, to the extent 
hereinafter set forth. 

Now, Therefore, I, Woodrow Wilson, President of the United 
States of America, by virtue of the powers conferred upon me by 
said Act of Congress, hereby find and determine and by this 
proclamation do announce that it is essential, in order to carry 
into effect the purpose of said Act, to license the importation, 
manufacture, and distribution of necessaries, to the extent here¬ 
inafter specified. 

All persons, firms, corporations, and associations, who manu¬ 
facture for sale bread in any form, cake, crackers, biscuits, pastry 
or other bakery products (excepting, however, those already 
licensed and those whose consumption of any flour and meal in 
the manufacture of such products is, in the aggregate, less than 
three barrels a month), are hereby required to procure a license 
on or before February 4, 1918. This includes hotels, restaurants, 
other public eating places, and clubs, which serve bread or other 
bakery products of their own baking. 

237 


All persons, firms, corporations, and associations engaged in 
the business of importing or distributing green coffee are hereby 
required to procure a license on or before February 4, 1918. 

Application for license must be made to the United States 
Food Administration, Washington, D. C., License Division, on 
forms prepared by it for that purpose, which may be obtained 
on request. 

Any person, firm, corporation, or association, other than those 
hereinbefore excepted, who shall engage in or carry on any busi¬ 
ness hereinbefore specified after February 4, 1918, without first 
procuring such license, will be liable to the penalty prescribed by 
said Act of Congress. 

Executed by the President, January 30, 1918. 

FIXING GUARANTEED PRICES FOR WHEAT 

Whereas, Under and by virtue of an Act of Congress entitled 
“An Act to provide further for the national security and defense 
by encouraging the production, conserving the supply, and con¬ 
trolling the distribution of food products and fuel,” approved 
by the President on the 10th day of August, One Thousand Nine 
Hundred and Seventeen, it is provided among other things, as 
follows: 

‘ 4 Sec. 14. That whenever the President shall find that an 
emergency exists requiring stimulation of the production of 
wheat and that it is essential that the producers of wheat, 
produced within the United States, shall have the benefits of 
the guaranty provided for in this section, he is authorized, 
from time to time, seasonably and as far in advance of 
seeding time as practicable, to determine and fix and to give 
public notice of what, under specified conditions, is a 
reasonable guaranteed price for wheat, in order to assure 
such producers a reasonable profit. The President shall 
thereupon fix such guaranteed price for each of the official 
grain standards for wheat as established under the United 
States Grain Standards Act approved August eleventh, nine¬ 
teen hundred and sixteen. The President shall from time to 
time establish and promulgate such regulations as he shall 
deem wise in connection with such guaranteed prices, and 
in particular governing conditions of delivery and payment, 
and differences in price for the several standard grades in 
the principal primary markets of the United States, adopting 
number one northern spring or its equivalent at the principal 
interior primary markets as the basis. Thereupon, the Gov¬ 
ernment of the United States hereby guarantees every pro¬ 
ducer of wheat produced within the United States that, upon 


238 


compliance by him with the regulations prescribed, he shall 
receive for any wheat produced in reliance upon this guar¬ 
antee within the period, not exceeding eighteen months, pre¬ 
scribed in the notice, a price not less than the guaranteed 
price therefor, as fixed pursuant to this section. In such 
regulations the President shall prescribe the terms and 
conditions upon which any such producer shall be entitled 
to the benefits of such guaranty. The guaranteed prices for 
the several standard grades of wheat for the crop of nineteen 
hundred and eighteen shall be based upon number one 
northern spring or its equivalent at not less than $2 per 
bushel at the principal interior primary markets. This 
guaranty shall not be dependent upon the action of the 
President under the first part of this section, but it is hereby 
made absolute and shall be binding until May first, nineteen 
hundred and nineteen.’’ 

Now, Therefore, I, Woodrow Wilson, President of the United 
States, by virtue of the powers conferred upon me by said Act 
of Congress, and especially by section 14 thereof, do hereby find 
that an emergency exists requiring stimulation of the production 
of wheat, and that it is essential that the producers of wheat 
produced within the United States shall have the benefits of the 
guarantee provided for in said section; and, in order to make 
effective the guarantee by Congress for the crop of nineteen hun¬ 
dred and eighteen and to assure such producers a reasonable 
profit, I do hereby determine and fix, and give public notice of 
reasonable guaranteed prices for No. 1 Northern Spring wheat 
and its equivalents at the respective principal primary markets 
as follows, to wit: 

Chicago, Illinois, Two Dollars and Twenty Cents ($2.20) per 
bushel; 

Omaha, Nebraska, Two Dollars and Fifteen Cents ($2.15) per 
bushel; 

Kansas City, Missouri, Two Dollars and Fifteen Cents ($2.15) 
per bushel; 

St. Louis, Missouri, Two Dollars and Eighteen Cents ($2.18) 
per bushel; 

Minneapolis, Minnesota, Two Dollars and Seventeen Cents 
($2.17) per bushel; 

Duluth, Minnesota, Two Dollars and Seventeen Cents ($2.17) 
per bushel; 

New York, New York, Two Dollars and Twenty-eight Cents 
($2.28) per bushel; 

Philadelphia, Pennsylvania, Two Dollars and Twenty-seven 
Cents ($2.27) per bushel; 

239 


Baltimore, Maryland, Two Dollars and Twenty-seven Cents 
($2.27) per bushel; 

Newport News, Virginia, Two Dollars and Twenty-seven Cents 
($2.27) per bushel; 

Charleston, South Carolina, Two Dollars and Twenty-seven 
Cents ($2.27) per bushel; 

Savannah, Georgia, Two Dollars and Twenty-seven Cents 
($2.27) per bushel; 

Portland, Oregon, Two Dollars and Five Cents ($2.05) per 
bushel; 

Seattle, Washington, Two Dollars and Five Cents ($2.05) per 
bushel; 

San Francisco, California, Two Dollars and Ten Cents ($2.10) 
per bushel. 

Los Angeles, California, Two Dollars and Ten Cents ($2.10) 
per bushel; 

Galveston, Texas, Two Dollars and Twenty Cents ($2.20) per 
bushel; 

New Orleans, Louisiana, Two Dollars and Twenty Cents 
($2.20) per bushel; 

Salt Lake City, Utah, Two Dollars ($2.00) per bushel; 

Great Falls, Montana, Two Dollars ($2.00) per bushel; 

Spokane, Washington, Two Dollars ($2.00) per bushel; 

Pocatello, Idaho, Two Dollars ($2.00) per bushel; 

Fort Worth, Texas, Two Dollars and Nine Cents ($2.09) per 
bushel; 

Oklahoma City, Oklahoma, Two Dollars and Five Cents 
($2.05) per bushel; 

Wichita, Kansas, Two Dollars and Eight Cents ($2.08) per 
bushel, 

and that the guaranteed price for the other grades established 
under the United States Grain Standards Act approved August 
11, 1916, based on said price for No. 1 Northern Spring wheat 
at the respective principal primary markets of the United States 
above mentioned, will assure the producers of wheat produced 
within the United States a reasonable profit; the guaranteed 
prices in the principal primary markets above mentioned being 
fixed by adopting No. 1 Northern Spring wheat or its equivalent 
at the principal interior markets, as the basis. 

For the purposes of such guaranty only, I hereby fix the guar¬ 
anteed prices at the respective principal primary markets above 
mentioned for the following grades of wheat, to wit: No. 1 
Northern Spring, No. 1 Hard Winter, No. 1 Red Winter, No. 1 
Durum, No. 1 Hard White. The guaranteed prices at the 
respective principal primary markets aforesaid of all other 
grades of wheat established under the United States Grain 

240 


Standards Act approved August 11, 1916, shall be based on the 
above guaranteed prices and bear just relation thereto. 

The sums thus determined and fixed are guaranteed by the 
Government of the United States at the respective principal 
primary markets of the United States above mentioned, to every 
producer of wheat of any grade so established under the United 
States Grain Standards Act, upon the condition that said wheat 
is harvested in the United States during the year 1918, and 
offered for sale before the first day of June, 1919, to such agent 
or employee of the United States, or other person as may be 
hereafter designated, at any one of the above-mentioned cities, 
which are, for the purposes of this Act, hereby declared to be 
the principal primary markets of the United States, and provided 
that such produce complies with all regulations which may be 
hereafter promulgated in regard to said guaranty by the Presi¬ 
dent of the United States. 

Executed by the President, February 21, 1918. 

LICENSING PACKERS OF CANNED TUNA AND 
OTHERS 

Whereas, Under and by virtue of an Act of Congress entitled 

An Act to provide further for the national security and defense 
by encouraging the production, conserving the supply, and con¬ 
trolling the distribution of food products and fuel,” approved by 
the President on the 10th day of August, 1917, it is provided 
among other things as follows: 

“That by reason of the existence of a state of war, it is 
essential to the national security and defense, for the 
successful prosecution of the war, and for the support and 
maintenance of the Army and Navy, to assure an adequate 
supply and equitable distribution, and to facilitate the 
movement of foods, feeds, fuel, including fuel oil and natural 
gas, and fertilizer and fertilizer ingredients, tools, utensils, 
implements, machinery, and equipment required for the 
actual production of foods, feeds, and fuel, hereafter in this 
Act called necessaries; to prevent, locally or generally, 
scarcity, monopolization, hoarding, injurious speculation, 
manipulations, and private controls, affecting such supply, 
distribution, and movement; and to establish and maintain 
governmental control of such necessaries during the war. 
For such purposes the instrumentalities, means, methods, 
powers, authorities, duties, obligations, and prohibitions 
hereinafter set forth are created, established, conferred, and 
prescribed. The President is authorized to make such regu- 

241 


lations and to issue such orders as are essential effectively 
to carry out the provisions of this Act.” 

And, Whereas, It is further provided in said Act as follows: 

“That, from time to time, whenever the President shall 
find it essential to license the importation, manufacture, 
storage, mining, or distribution of any necessaries, in order 
to carry into effect any of the purposes of this Act, and 
shall publicly so announce, no person shall, after a date 
fixed in the announcement, engage in or carry on any such 
business specified in the announcement of importation, 
manufacture, storage, mining, or distribution of any neces¬ 
saries as set forth in such announcement, unless he shall 
secure and hold a license issued pursuant to this section. The 
President is authorized to issue such licenses and to prescribe 
regulations for the issuance of licenses and requirements for 
systems of accounts and auditing of accounts to be kept by 
licensees, submission of reports by them, with or without oath 
or affirmation, and the entry and inspection by the President’s 
duly authorized agents of the places of business of licensees. ’ * 

And Whereas, It is essential in order to carry into effect the 
provisions of the said Act, that the powers conferred upon the 
President by said Act be at this time exercised, to the extent 
hereinafter set forth. 

Now, Therefore, I, Woodrow Wilson, President of the United 
States of America, by virtue of the powers conferred upon me by 
said Act of Congress, hereby find and determine and by this 
proclamation do announce that it is essential, in order to carry 
into effect the purposes of said Act, to license the importation, 
manufacture, storage and distribution of necessaries, to the 
extent hereinafter specified. 

All persons, firms, corporation and associations engaged in 
business as: 

(1) Packers of canned tuna; 

(2) Packers of mild cured, hard cured, salted, dried, smoked, 
pickled or otherwise preserved salmon ; 

(3) Operators of poultry and egg packing plants not already 
licensed by the United States Food Administration; 

(4) Ginners, buyers, agents, dealers or other handlers of cot¬ 
ton seed not already licensed by the United States Food Adminis¬ 
tration who handle yearly between September 1 and August 31 
more than twenty (20) tons of cotton seed. 

(5) Importers, manufacturers or distributors of cottonseed 
hulls, and owners of elevators, warehouses or other places for 
the storage of cottonseed hulls. 


242 


(6) Manufacturers of fermented beverages containing less 
than one-half of one per cent of alcohol. 

Excepting, however, 

(1) Retailers whose gross sales of food commodities do not 
exceed One Hundred Thousand Dollars ($100,000) per annum; 

(2) Common carriers as to operations necessary to the business 
of common carriage; 

(3) Farmers, gardeners, co-operative associations of farmers 
or gardeners, including live stock farmers, and other persons 
with respect to the products of any farm, garden or other land 
owned, leased or cultivated by them. 

Are hereby required to secure on or before June 1, 1918, license, 
which license will be issued under such rules and regulations 
governing the conduct of the business as may be prescribed. 

Application for license must be made to the United States Food 
Administration, Washington, D. C., License Division, on forms 
prepared by it for that purpose, which may be secured on 
request. 

Any person, firm, corporation or association who shall carry 
on any business hereinbefore specified after June 1, 1918, with¬ 
out first securing such license, will be liable to the penalty pre¬ 
scribed by said Act of Congress. 

Executed by the President, May 14, 1918. 


243 


INDEX 


A 

Accounts sale, 34 

Accounting commission merchants fresh 
fruits or vegetables, 86 
Advertising, sugar, 54 
Administrator, 6, 15 

Agent, sales commission merchants fresh 
fruits or vegetables, 86 
Agreement between Grain Corporation 
and Millers, form of, 111 
Agreement between Grain Corporation 
and Elevators, form of, 108 
Alimentary paste, 11 
Alfalfa, 10 

American cheese, 164 
Apples, 9 

Apples, dried, special regulations, 80 
Arbitration dispute, shipment fresh fruits 
and vegetables, 85 
Auctioneers, butter, 170 
Auctioneers, 28, 73 
Austria-Hungary, 2 
Averaged goods, 49 
Averaging, 63 

Averaging non-perishable food com¬ 
modities, 75 
Averaging poultry, 180 
Average purchase price, 49 


B 

Bakers, general information, 98 
Bakers, must purchase wheat flour sub¬ 
stitutes, 131 
Bakers, substitutes, 62 

Bakers using less than three barrels per 
month not required have license, 98 
Bakery products, 10 

Bakery products, manufacturers of bread 
and rolls, 93 

Maximum weight of rolls, 2 ounces, 93 
Amount of sugar limited, 93 
Use of shortening limited, 94 
When milk may be used, 94 
Sugar or shortening must not be added 
to dough, 94 

Sweet yeast dough goods, definition of, 94 
Wheat flour substitutes to be used, 94 
Use of animal fats as shortening, 94 
Crackers, definition of, 94 
Wheat flour substitutes to be used, 95 
Use of animal fats as shortening, 95 
Biscuits, cookies and ice cream cones, 
definition of and regulations, 95 
Wheat flour substitutes to be used, 95 
Shortening, use of animal fats, 95 
Cakes, definition of, 95 
Wheat flour substitutes to be used, 95 
Substitutes, 95 
Pies, definition of, 95 
Wheat flour substitutes to be used, 95 
Use of animal fats as shortening per¬ 
mitted, 96 

Fried cakes, definition of, 96 
Wheat flour substitutes to be used, 96 
Animal fats as shortening, 96 
Pastry, definition of, 96 


Wheat flour substitutes to be used, 96 
Bread, Boston Brown, batter cakes and 
waffles, 96 

Wheat substitutes to be used, 96 
Use of animal fats permitted, 96 
Bakery, bread, when name may be 

used, 91 

Bakery products, manufacturers of bread 
and rolls, 92 

Bakery products, manufacturers of, 

license government Institution, 97 
Bakery products, manufacturers of, return 
of products prohibited, 90 
Bakery products, manufacturers of, 

special license regulations, 89 

Bakery products, manufacturers of, stock 
of wheat, flour, sugar, shortening, 90 
Bakery products, manufacturers of, use of 
shortening, 91 

Bakery products, manufacturers of, use of 
vegetable shortening, 90 
Bakery products, special regulations ap¬ 
plying to all manufacturers, 89 
Bakery products, manufacturing of, 
wheat flour substitutes, 90 
Bakery products, manufacturing of, wheat 
flour substitutes defined, 90 
Bakery products, manufacturers of, 
weight of loaves bread, 93 
Bakery products, manufacturers of, wheat 
flour, consumption of during August, 89 
Barley products must arrive destination in 
good condition, 142 
Barley Flour, specifications for, 141 
Barley, dealers in, charges, 134 
Barley, dealers in, special regulations, 133 
Barley Flour, specifications, pre¬ 
scribed, 120 

Barrel, standard of for fruits, vegetables, 
etc., 88 

Barley Flour, 46, 63 
Barley, 9 

Beans, dried, 46, 47 
Beans, 9, 67 
Beans, canned, 47 
Beef, 9 
Beef juice, 46 
Beet sugar, 41 

Beverages fermented, manufacture of, 
special regulations, 145 
Bills of lading, 36 

Biscuits, cookies and ice cream cones, 95 
Blackstrap molasses, sale of, 150 
Board of Trade, 36 

Board of Trade, dealings on, not governed 
by grain regulations, 135 
Boats, 40 

Boarding houses, 10, 40 
Boarding camps, employees eating places, 
bakery license, 97 
Bologna, 46 
Bolted meal, 66 
Branding, 159 

Breads, Boston brown, ingredients, de¬ 
finition of, 96 

Bread and rolls, wheat flour substitutes 
required, 92 


244 


Bread, public eating places serving, 91 
Bread and rolls, special regulations, 92 
Bread and rolls, 92 

Brokerage, jobbers splitting with broker, 
75 

Brokerage, wheat mill feeds, 148 
Brokers, fresh fruits or vegetables, see 
commission merchants, 86 
Broker, recommendations by U. S. Food 
Administrator, 98 
Brokers, butter, 170 
Broker, 28 

Brokerage, poultry, 182 
Brokerage fixed, 42 
Brokerage, coffee, 71 

Brokerage, charges commission merchants 
fresh fruits or vegetables, 86 
Broom corn, 10 
Butter, resales, 186 
Butter merchants, 183 
Butter brokers, 170 
Butter, 9 

Bureau of merchants, grading of pota¬ 
toes, 88 
Buffets, 40 
Buckwheat, 10 


C 

Cakes, definition of, 95 
Cane, 10 
Cane sugar, 41 
Canned beans, 47 
Canned beef, 46 
Canned chili meat, 46 
Canned corn, 46, 47 
Canned corn beef, 46 
Canned dried beans, 46 
Canned meats, 47 
Canned mutton, 46 
Canned peas, 46, 47 
Canned pork, 46 
Canned salmon, 46, 47 

Canned salmon, sales of, 78 
Canned sardines, 46, 47 
Canned products, 68 
Canned tomatoes, 46, 47 
Canned vegetables, sales of, 77 
Canners, 13 

Canners, adulteration prohibited, 76 
Canners, buying vegetables and fish, 78 
Canners, carload shipments, minimum 
weights, 75 

Canners, contracts future delivery, 78 
Canners dried beans, 78 
Canners, factory and equipment, 76 
Canners, form contract, 78 
Canners, grades and sizes, 76 
Canners, permissible charges, 76 
Canners, permission to sell future de¬ 
livery, 77 

Canners, selling price, 75 
Canning corn, 75 

Canning of fresh vegetables and fish, 77 
Canning peas, 75 
Canning, special regulations, 75 
Canning tomatoes, 75 
Canteens, 40 
Cantonment camps, 40 
Carload shipments rice, rice flour, 152 
Carload shipments, dealers in wheat, 134 
Carload shipments corn, oats, rye and 
barley, 135 

Car lot shipments minimum, wheat 
millers, 131 
Carload shipments, 47 


Carload shipments, canners, 75 
Carload shipments cotton seed, pea¬ 
nuts, 100 

Carload shipments, crushers cotton seed, 
peanuts, soya beans, palm kernels, 
copra, 103 

Carload shipments, manufacturers 
milk, 79 

Carload shipments, refiners cotton seed 
oil, peanut oil, soya bean oil, 104 
Catalogs, 36 
Caterers, 40 
Catsup, 11 
Chain stores, 39 
Charges of canners, 76 
Charges, distributor fresh fruits and 
vegetables, 81 

Charges, cotton seed oil, peanut oil, 100 
Charges, cotton seed, peanuts, soya 
beans, 102 

Charges, dried fruits, 81 
Charges, ginners cotton seed, 100 
Charges, manufacturers condensed, eva¬ 
porated, powdered milk, 80 
Charges, refiners cotton seed, peanut oil, 
soya bean oil, 104 
Charges, tomato products, 76 
Charges by wheat millers, maximum per¬ 
missible margins over car lot bulk 
sales, 121 

Charges, wholesalers or jobbers, wheat 
mill feeds, 148 

Charges, maximum margins, manufac¬ 
tured products of corn, oats, rye, 
barley, 137 

Charges, products of corn, oats, rye or 
barley, 137 

Charges, dealers in corn, oats, rye, 
barley, 134 

Charitable institutions, 11 

Charitable institution, bakery license, 97 

Checks, 36 

Cheddar cheese, 164 

Cheese, 9, 165 

Cheese merchants, 162 

Chili meat, canned, 46 

Chipped beef, 46 

Claims, fresh fruits or vegetables, re¬ 
fusal to adjust, 84 

Claims on shipments, fresh fruits or vege¬ 
tables, 84 
Clubs, 40 
Coffee, 11 

Coffee, green, 46, 68 
Coffee, brokerage, 71 
Coffee resales, 70 
Cold storage, 8 
Cold storage, butter, 186 
Cold storage charges, 30 
Cold storage eggs, 169, 173 
Cold storage warehouse men, 155 
College, 10 
Combination sales, 37 
Commissions, 73 
Commission men, 11 
Commission merchants, 28, 169 
Commission merchants, brokers fresh 
fruits or vegetables, 86 
Commission merchants butter, 183 
Commission merchants, cheese, 162 
Commission merchants, fresh fruits and 
vegetables, 86 

Commission merchants, fresh fruits or 
vegetables, brokerage charges, 86 
Commission, wheat mill feeds, 148 
Combination sales wheat flour substi¬ 
tutes, 132 


245 


Common carriers, 13 
Condensed milk, 46, 47 

Condensed milk, manufacturers of, special 
regulations, 79 

Conditional orders, fresh vegetables pro¬ 
hibited, 77 
Consignments, 171 
Constitutionality, 20 
Containers tin plate, dried beans, 79 
Contracts, importers peanuts, peanut oil, 
soya beans, furnish Food Administra¬ 
tor, 103 

Contract, form of, rice flour, 153 
Contracts, manufactured products of corn, 
oats, rye or barley, period of delivery 
60 days, 137 

Contract for corn products, form of, 138 
Contracting and shipping, wheat millers, 
125 

Contract form for wheat millers, 125 
Contract, containers of fresh fruits and 
vegetables, 84 

Contract, dried beans, sale more than 
60 days supply prohibited, 79 
Contract, form of canners, 78 
Contract, fresh fruits, vegetables, cancel¬ 
lation of prohibited, 83 
Cooking fats, 46 
Co-operative associations, 13 
Copra, 9 

Corn beef, canned, 46 
Corn flour, specifications prescribed, 120 
Corn products must arrive at destination 
good condition, 143 

Corn meal, package differentials on, 142 
Corn meal, specifications for, 140 
Corn products, uniform contract form, 138 
Corn flour, specifications for, 141 
Corn, dealers in, charges, 134 
Corn, oats, rye, barley products, manu¬ 
facturing of, special regulations gover- 
ing, 136 

Corn, dealers in, special regulations, 133 
Corn beef hash, 46 
Corn, canned, 46, 47 
Corn flour, 9, 46, 63 
Corn grits, 9, 46, 47, 63 
Cornmeal, 9, 46, 47, 63 
Corn oil, 9, 46 
Cornstarch, 46, 47 
Corn syrup, 9, 46 
Cost accounting systems, 51 
Cotton ginners, special regulations dealers 
and brokers in, 99 

Cotton producing territory divided into 
zones, 103 
Cotton seed, 9, 10 

Cotton seed, carload shipments, 100 
Cotton seed, charges, 102 
Cotton seed crushers, limitations on buy¬ 
ing and selling, 102 

Cotton seed crushers, special regulations 
governing, 99 

Cottonseed hulls, dealers and buyers in, 
special regulations, 149 
Cottonseed cake, dealers and buyers in, 
special regulations, 149 
Cottonseed meal, dealers and buyers in, 
special regulations, 149 
Cotton seed meal for fertilizing pur¬ 
poses, 99 

Cotton seed meal, specifications and 
quotations, 102 
Cotton seed mills, 192 

Cotton seed oil, refiners of, purchases 
from August 4, 104 


Cotton seed oil, refiners of, special re¬ 
gulations, 104 

Cotton seed oil, oil produced by others, 102 
Cotton seed, peanuts, differentials, 100 
Cotton seed, peanuts, purchase price, 99 
Cotton seed, selling price, 100 
Cotton seed, special regulations, dealers 
and brokers, 99 

Cotton seed, storing facilities, 99 
Cotton seed, used as fertilizer pro¬ 
hibited, 99 

Cotton seed, waste, 100 

Copra and copra oil, special regulations, 99 
Copra, copra oil and palm oil, importers 
of, special regulations, 99 
Country merchants, eggs, 190 
Country storekeepers, 12 
Credit, wheat millers, 122 
Crushers cotton seed, peanuts, etc,, 101 
Cured beef, 46 
Cured mutton, 46 
Cured pork, 46 

Custom milling and exchange transac¬ 
tions, 118 

Custom and exchange, grinding wheat 
millers, 124 


D 

Dealers in corn, oats, barley and rye, 
contract period of delivery 30 days, 135 
Dealers in corn, oats, barley and rye, 
rules governing, 134 
Delivery, contracts for more than 60 days 
dried beans prohibited, 79 
Delivery slips, 35 
Desiccated eggs, 178 
Deviled ham, 46 
Differentials, 42 

Differentials, lard substitutes, 193 
Dining cars, 40 
Distribution of sugar, 4 3 
Double brokerage, 43 
Drafts, 36 

Dried beans, 9, 46, 47, 67, 75 
Dried beans, canners of hoarding, 78 
Dried beans, canned, 46 
Dried beans, contracts for delivery more 
than 60 days prohibited, 79 
Dried beans 60 day supply sale of, 79 
Dried beef, 46 
Dried fruits, 46, 47, 68 
Dried fruits, charges permitted, 81 
Dried fruits, contracts with grower to 
market, 81 

Dried fruits, facing of prohibited, 81 
Dried fruits, preparing or packing of, 81 
Dried fruits, price list and circulars mall 
Food Administrator, 81 
Dried peas, 46, 47, 67 


E 

Eggs, 9 

Egg brokers, 170 

Eggs, cold storage, 169, 173 

Egg packing plants, 12 

Egg profits, 175 

Elevators, storage of wheat limited, 183 

Elevators handling oats, special regula¬ 
tions, 133 

Elevators, wheat, rye, corn, oats, barley, 
storage space subject to govern¬ 
ment, 133 

Elevators handling corn, special regula¬ 
tions, 133 


246 


Elevators handling rye, special regula¬ 
tions, 133 

Elevators handling barley, special regula¬ 
tions, 133 

Elevators handling wheat, special regula¬ 
tions, 133 

Elevator companies, 36 
European countries, 1 
Evaporated fruits, 46 
Evaporated milk, 46, 47 
Evaporated milk, manufacture of, special 
regulations, 79 

Exchange transactions by wheat 
millers, 125 

Exchange transactions, wheat millers, size 
of, 132 

Excessive prices, 24 
Exchange sales, 35 
Exports, 17 

Express companies, 13 

F 

Farina, manufacture of, 119 
Farina flour, permissible price differ¬ 
ential, 123 
Factory canners, 76 
Fair price list, 24 
Farm equipment, 11 
Farmers, 13 
Favored customers, 51 

Feeding stuffs, special regulations, affec¬ 
ting dealers in wheat, rye, corn, oats 
and barley, 146 

Feeding stuffs, special regulations gover¬ 
ning, 145, 150 
Feeding poultry, 188 

Feeding stuffs, regulations applicable to 
dealers in cotton seed cake, cotton seed 
hulls, peanut meal, 104 
Feeds, 10 

Feed to be mixed in 1917 proportion, 124 
Feeds, wheat mill, special regulations, 148 
Fertilizer, 11 
Fish, 9 

Fish, buying of, 78 
Fixing prices, 23 
Flour, 47, 56 
Flour, contract form, 57 
Flour mixer, 74 
Flour, quality of, 118 

Flour price schedule to be displayed by 
wheat millers, 121 
Flour, mixed, definition of, 116 
Flour, reconditioners of, subject to regu¬ 
lations, 116 

Flour, jobbers of, maximum margins, 
51, 123 

Food Administrator, 6, 15 

Food Administration, creation, 6 

Food control law, 1 

Food survey law, 3 

Foreclosing lien, 9 

Foreign ships, 10 

France, 3 

Fresh eggs, 189 

Fresh fruits and vegetables, acceptance 
of, 83 

Fresh fruits and vegetables, brokers state¬ 
ments to buyers, 86 

Fresh fruits and vegetables, time car 
unloading, 83 

Fresh fruits or vegetables, claims against 
consignor, 84 

Fresh fruits or vegetables, commission 
merchants, special regulations gover¬ 
ning, 86 


Fresh fruits or vegetables, commission 
merchant agent sales, 86 
Fresh fruits or vegetables, consent of 
buyer to substitution necessary, 83 
Fresh fruits and vegetables, form of con¬ 
tract, 85 

Fresh fruits or vegetables, must be quality 
contracted for, 83 

Fresh fruits and vegetables, notes Rules 
3 to 9; 85 

Fresh fruits and vegetables, notification 
of condition on arrival, 84 
Fresh fruits or vegetables, refusal to 
adjust claims, 84 

Fresh fruits and vegetables, unloading 
of, 83 

Fresh poultry, 188 

Fresh vegetables, conditional orders, ac-' 
ceptance of prohibited, 77 
Fried cakes, definition of ingredients, 96 
Frozen eggs, 178 
Frozen poultry, 169, 179 
Fruits, dried, 46, 47, 68 
Fruits, evaporated, 46 

Fruits dried, minimum carload ship¬ 
ments, 80 

Fruits, fresh, minimum carload ship¬ 
ments, 82 

Fruits, new crop not to be bought or sold 
before July 15, 81 

Fruits and vegetables, fresh, distribution 
of, 81 

Fruits or vegetables, fresh, cancellation 
of contracts, 83 

Fruits or vegetables, fresh, hoarding of, 83 

Future delivery, 49 

Future delivery, eanner contracts, 78 


G 

Gardeners, 13 
General regulations, 28 
Germany, 1 
Ginners, 13 

Ginners, cotton seed charges, 100 
Glucose, 9, 46 

Government institution, bakery license, 97 
Grains, 10 
Great Britain, 2 

Grain corporation, organization of, 106 
Grain corporation, marketing direct 
to, 115 

Grain corporation, details of buying 
plan, 114 

Grain, 60 days’ supply, 135 

Grit, specifications for, 140 

Grain corporation, traffic bureau, 115 

Green coffee, 11, 68 

Grain corporation, transportation, 115 

Guaranty of sales, 172 

Guarantees, 34 


H 

Ham, 46 
Hay, 10 

Hoarding, 60 days’ supply, manufacturers 
corn, rye, oats or barley products, 136 
Hoarders of grain, sales to, forbidden, 135 
Hoarding by dealers in corn, oats, rye 
and barley prohibited 60 days sup¬ 
ply, 134 

Hoarders of corn, oats, rye or barley 
products, sales to forbidden, 136 
Hoarding canners dried beans, 78 
Hoarding cotton seed crushers peanuts, 
etc., 60 days’ supply, 101 


247 


Hoarding cotton seed 60 day period, 100 
Hoarding fresh fruits or vegetables, 83 
Hoarding peanuts, peanut oil, soya 
beans, 103 
Hospitals, 12, 40 
Hominy, 9, 46, 47, 63 

Hominy feed, dealers in, special regula¬ 
tions applying to, 150 
Hominy, specifications for, 140 
Hominy feed, specifications for, 141 
Hominy, feed, profits on, 138 
Hotels, 12, 40 
Householders, 18 
Hucksters, 12 

I 

Ice, 13 

Importers peanuts, peanut oil, soya beans, 
soya bean oil, copra, copra oil, palm 
kernels, palm kernel oil, 103 
Inspection fresh fruits and vegetables, 84 
Intertrading cheese, 167 
Inspection rights, 29 
Italy, 3 

Invoice to be used by wheat millers, 129 


J 

Jobbers, butter, 185 
Jobbers’ profits, eggs, 176 
Jobbers’ profits, poultry, 181 


K 

Kaffirs, 10 


L 

Lard, 9, 47. 50 

Lard substitutes, 47, 191 

Lamb, 46 

License numbers, 35 
License regulations, 27 
License, 8 

License, special regulations, 80 

Licensees, 27 

Limitations, 22 

Local Food Administrator, 15 

Loan margins, 158 

Luncheon tongue, 46 


M 

Malt, no wheat to be malted, 145 
Malt, manufacture, storage and distribu¬ 
tion of, special regulations governing, 
143 

Malt not to be delivered without permit, 
exception, 144 
Malt sprouts, 10 
Manufacturers’ certificate, 56 
Maple syrup, 13, 47 
Maple compounds, 13, 47 
Maple sugar, 47 
Maximum advance, 174 
Margins by warehouse men, 158 
Market reports, 36 
Market quotation, 34 
Margins in resale, 53 
Marking containers, 160 
Maximum margins, 51, 53 
Maximum weights, 47 


Mixed flours, 47 
Meat packers, 195 
Meats, canned, 47 
Menus, 36 
Milk, 9 
Milo, 10 

Mixed feeds, 10 
Millet, 10 
Millers, 13 

Millers dealing in wheat, 116 
Millers dealing in flour or feed, 116 
Milling division, organization of, 107 
Misrepresentation by brokers, 87 
Mixed flour, 50 
Mince meat, 46 

Mixed flour manufacturers, special regula¬ 
tions, 116 

Mixed flour, manufacture of, 119 
Molasses, 47 
Monthly reports, 28 
Mutton, 9 


N 

Near-Beer, manufacture of, special regu¬ 
lations, 145 

Non-alcoholic drinks, 11 
Non-licensees, 18 
Non-perishable products, 72 
Non-perishable food commodities, averag¬ 
ing, 75 

Non-perishable foods, 28 
Net return basis, 171 
Neutral countries, 3 


O 

Oats, dealers in, special regulations, 133 

Oats, dealers in, charges, 134 

Oatmeal, 9, 47 

Old fashion meal, 66 

Oleomargarine, 9, 47, 50 

Oleo oil, 47 

Overage, 73 

P 

Packing houses, 195 

Packages uniform for corn, oats, rye and 
barley products, carload shipments, 143 
Package charge, wheat millers, 121 
Palm oil, 9 

Palm kernels, special regulations, 99 
Pastry, definition of ingredients, 96 
Peaches, 9 

Peaches, dried, packing of, 80 
Peanuts, carload shipments, 100 
Peanuts, charges, 102 
Peanut crushers, special regulations, 99 
Peanut crushers, limitations on buying and 
selling, 102 

Peanuts, importers of, hoarding, 103 
Peanuts, special regulations, dealers and 
brokers in, 99 
Peanuts, selling price, 100 
Peanuts, storing facilities, 99 
Peanut meal, dealers in, special regula¬ 
tions, 149 
Peanut oil, 9 

Peanuts, soya beans, palm kernels, deal¬ 
ers’ and brokers’ imported products 
special regulations, 99 
Peanuts, peanut oil, importers of, special 
regulations, 99 
Peas, canned, 46, 47 


248 


Peas, 9, 67 
Pea seed, 9 
Peas, dried, 46, 47 
Pearl meal, 66 
Peddlers, 12 
Penalties, 15, 18 

Permit to can dried beans, peas, in tin 
plate containers, 79 
Persons violating laws, 32 
Permits special wheat flour or mill feed, 
117 

Permits special wheat storage, 117 
Perishable products, 28 
Pies, definition of ingredients permit¬ 
ted, 95 
Pork, 9 

Potted meats, 46 

Potatoes bought and sold by pound or in 
containers, 87 

Potatoes, Federal law creating standard 
container, 88 
Potatoes, grading of, 88 
Potatoes, grading of, bureau of markets, 
88 

Potatoes, grade requirements, explanation 
of, 88 

Potatoes, distributor of, special regula¬ 
tions governing, 87 

Potatoes shipped, to be free from defects, 
87 

Poultry, 9, 169 
Poultry, dressed, 188 
Poultry brokers, 170 
Poultry, averaging, 180 
Poultry, frozen, 179 
Poulti’y plants, 12 
Poultry in transit, 188 
Powdered eggs, 178 

Powdered milk, manufacturers of, special 
regulations, 79 
Powdered milk, 46, 47 
Price lists, 42 
Price tags, 36 
Price fixing, 23 
Private warehousemen, 155 
Proclamations, bakers, 96 
Products, tainted, 161 
Profits, cold storage eggs, 175 
Profits on poultry, 181 
Profits on resale, 31 
Profit control, millers, 116 
Profits, prices and differentials, wheat 
millers, 120 
Promissory notes, 36 
Proprietary brands lard, 194 
Producers of sugar, 45 
Prunes, 9 

Prunes, dried, special regulations, 80 
Public eating places, 40 
Public warehouse men, 155 
Purchase price cotton seed crushers, pea¬ 
nuts, etc., 101 

Q 

Quotations, 34 

Quotations, fresh vegetables before Febru¬ 
ary 1st prohibited, 77 

R 

Raisins, 9 
Rates, storage, 157 
Reasonable advance, 49 
Reasonable profits, 51 
Rebates, 113 


Reconditioning and blending, differentials 
for, 124 

Records kept, 29 
Refined sugar, 53 
Refined grits, 63 

Refiners cotton seed oil, special regula¬ 
tions, 99 

Refiners cotton seed oil, peanut oil, period 
of delivery, 104 

Refiners copra oil, special regulations, 99 
Refiners palm kernel oil, special regula¬ 
tions, 99 

Refiners of peanut oil, special regulations, 
99 

Refiners soya bean oil, special regula¬ 
tions, 99 

Refiners of sugar, 41, 44 
Regulations, special, 27 
Regulating prices, 23 
Repairs, 28 

Requirements, buying of fresh fruits and 
vegetables, 82 
Resales, 30, 52 
Resales, butter, 30, 186 
Resales, cheese, 30 
Resales, coffee, 30, 70 
Resales, eggs, 30, 177 
Resales, fresh eggs, 189 
Resales, poultry, 30, 182 
Resales, rice, 30 

Resales within the trade, wheat mill feed, 
149 

Restaurants, 12 
Restrooms, 40 
Retailers, 12 

Retailers and consumers must purchase 
wheat flour substitutes, 132 
Rice, 9, 47 
Rice, cleaned, 47 
Rice flour, 9, 47, 50 
Rice millers, special regulations, 151 
Roasted coffee, 72 
Rolled oats, 9, 47 

Rough rice, dealers in, special regula¬ 
tions, 150 
Round cheese, 164 
Rye, dealers in, charges, 134 
Rye flour, 9, 47, 63 
Rye flour, specifications for, 141 
Rye products must arrive destination in 
good condition, 142 


S 

Sale price guaranteed, 34 
Sales, canned salmon, sardines, 78 
Sales, canned vegetables must not exceed 
75 per cent yearly average delivery 
1913-1917, 77 
Sales combination, 37 
Sales to speculators, 31 
Sales tickets, 35 
Salmon, 68, 75 
Salmon, canned, 46, 47 
Salt water fish, 10 
Sardines, 9, 68, 75 
Sardines, canned, 46, 47 
Sardines, maximum prices, 76 
Sardines, sales of, 78 
Sausage, 46 
Schools, 10 

Schools, bakery license, 97 
Scope of power, 21 
Scrapple, 46 
Secure rebates, 33 
Self-rising flours, 47, 50 


Selling price, canners, 76 
Shelled corn, 10 

Shipment by wheat millers, change in 
point of, 131 

Shippers’ Association, 33 
Shippers, bakery license required, 98 
Shortening, meaning of, bakery prod¬ 
ucts, 91 

Sixty days considered calendar days, 101 
Sixty days’ supply cotton seed, peanuts, 
100 

Sixty-day rule, 49 

Sixty days’ supply dried beans, 79 
Sixty days’ supply milk, condensed, 
evaporated or powdered, 80 
Sliced bacon, 4 6 
Soda fountains, 40 
Soya beans, 9 

Soya bean crushers, special regulations, 99 
Soya beans, charges, 102 
Soya bean crushers, limitations of buying 
and selling, 102 

Soya bean meal, dealers and buyers in, 
special regulations, 149 
Soya beans, soya bean oil, importers of, 
special regulations, 99 
Special discounts, 51 

Special license regulations, refiners, deal¬ 
ers, brokers cotton seed oil, peanut oil, 
soya beans, palm kernel and copra 
oils, 99 

Special profit regulations, 29 
Special regulations, 27 

Special regulations commission mer¬ 
chants, brokerage fresh fruits, etc., 86 
Special regulations, distribute fresh fruits 
and vegetables, 81 

Special regulations, distributors of pota¬ 
toes, 87 

Soya beans, palm kernels and copra, 99 
Special regulations governing canning 
business, 75 

Special regulations importers peanuts, 
peanut oil, soya beans, soya bean oil, 
palm kernels, copra, etc., dealers and 
brokers in such products, 99 
Special regulations, manufacturers bak¬ 
ery products, 89 

Special regulations, manufacturers con¬ 
densed, evaporated, powdered milk, 79 
Special regulations, packers dried peaches, 
apples, prunes, raisins, 80 
Special regulations, dealers and brokers 
cotton seed, peanuts, cotton ginners, 99 
Special rules, 38 
Special rules, peculiar, 35 
Speculation, 31 
Spelt, 10 

Splitting of brokerage, 75 
Standard meal, 66 
Starch, 9 
Stock Yards, 11 
Storage charge, 24 
Storage facilities, 101 

Storage in seaboard elevators limited 30 
days, 133 

Storage of wheat limited, 133 
Storage rates, 157 
Storage tickets, 36 
Storekeepers, 12 
Storing frozen poultry, 180 
Straw, 10 

Substitutes, lard, 191 
Substitutes, wheat flour, 59 
Substitutes for wheat flour defined, baking 
regulations, 90 


Substitutes, wheat flour, must be pur¬ 
chased by bakers, 132 
Substitutes, wheat flour, must be pur¬ 
chased by retailers and consumers, 132 
Substitutes, wheat miller prohibited ac¬ 
cepting return of, 132 
Sugar, 9, 4 7 
Sugar certificates, 43 
Sugar resales, 53 
Sugar distribution certificates, 55 
Sugar refiners, 41 
Sugar rules, 38 

Sugar, use of, manufacturers bakery prod¬ 
ucts, 92 
Syrup, 47 
Swiss cheese, 164 


T 

Table brand, price differential, 123 
Tainted goods, 161 
Thirty-day rule, 49 
Tomatoes, 9, 68 
Tomatoes, canned, 46, 47 
Tomatoes, canned, water must not be 
added, 77 

Tomato catsup, manufacturing, special 
rules, 75 

Tomato products, 11 

Tomato products, manufacturing, selling 
price, 76 

Tomato products, manufacturing, special 
rule, 75 

Tomato soup, manufacturing, special 
rules, 75 

Trade names, 14 

Traffic Bureau of grain corporation, 115 
Transportation, grain corporation, 115 
Tripe, 4 6 
Tuna, 9, 75 
Two profits, 51 

U 

Unbroken cases, 52 
Unfair profits, 32 
Ungraded cheese, 168 
Universities, 10 
Unjust commission, 24 

Unloading fresh fruits, and vegetables, 
time for, 83 

Unreasonable profits, 29, 51 
Unwholesome goods, 161 


V 

Veal, 46 
Veal loaf, 46 
Vegetables, 9 

Vegetables and fish canning of, 77 
Vegetables and fruits, fresh, distribution 
of, 81 

Vegetables, buying of, 78 
Vegetables, fresh, cancellation of con¬ 
tract prohibited, 83 

Vegetables, fresh fruit, distributors of, 
charges permitted, 81 
Vegetables, fresh, minimum carload ship¬ 
ments, 82 

Vegetables, shortening, bakery products, 
manufacturers of, 90 
Vegetable oil, 192 
Velvet beans, 10 
Violations, 16, 32 

Voluntary agreements under food control 
act, 108 


250 


w 

Waffles, definition of, 96 
Warehouse men, 8, 155 
Warehouse receipts, 36 
War power, 21 
Waste, 32 

Waste by wheat millers prohibited, 119 
Waste, cotton seed, 100 
Waste, cotton seed crushers, peanuts, soya 
beans, 101 

Waste, dried fruits, 81 
Water ground meal, 66 
Wheat conservation, 58 
Wheat conservation, definition of clean 
wheat, 118 

Wheat, dealers in, limited to 30 days’ 
supply, 134 

Wheat, dealing in, by wheat millers, 116 
Wheat and flour control 1918, plan of, 112 
Wheat conservation, minimum flour ex¬ 
traction, 117 

Wheat conservation, definition of red 
dogs, 118 

Wheat flour, 9, 47, 50, 56 
Wheat mill feed differentials and return 
on, 124 

Wheat, dealers in, contracts for delivery 
beyond 30 days prohibited, 134 
Wheat, dealers in, special regulations, 133 
Wheat dealers, carload shipments, 134 
Wheat, fair prices named by the Adminis¬ 
tration, 113 

Wheat mill feed, resales within trade 
prohibited, 149 

Wheat mill feeds, special regulations, 148 
Wheat mill feeds, permissible charges, 
jobbers and wholesalers, 148 
Wheat mill feeds, charges for, 148 
Wheat not to be used for feeding, excep¬ 
tions, 118 

Wheat not to be malted, 145 
Wheat not to be sold for feed, 133 
Wheat, rules for dealing in, 133 
Wheat millers, hoarding, 30 days’ supply, 
117 

Wheat millers, change in point of ship¬ 
ment. 131 

Wheat miller, mixing wheat, mill feed 
with other feeds prohibited, 124 


Wheat millers, quantity of flour deliver¬ 
able by, 132 

Wheat millers operating on exchange 
basis, 125 

Wheat millers, sales to retailers and con¬ 
sumers, 132 

Wheat millers, sales to bakers, 131 
Wheat millers, wheat flour substitutes de¬ 
fined, 131 

Wheat millers, minimum car lot ship¬ 
ments, 131 

Wheat millers’ uniform invoice pre¬ 
scribed, 129 

Wheat millers should display flour price 
schedules, 121 

Wheat millers, contracting and shipping, 
125 

Wheat millers, maximum permissible 
margins, 121 

Wheat millers, fair price schedule, 120 
Wheat millers’ schedule of fair prices, 122 
Wheat millers, package charge, 121 
Wheat millers, labeling of packages, 118 
Wheat millers’ credit, 122 
Wheat millers must not commit waste, 119 
Wheat millers, special regulations gover¬ 
ning, 116 

Wheat millers, use of wheat flour for other 
than human consumption prohibited, 119 
Wheat millers, only one grade of flour, 119 
Wheat millers, profits, prices and differ¬ 
entials, 120 

Wheat millers’ sales of feed to con¬ 
sumers, 122 

Wheat millers, allowable feed extrac¬ 
tion, 118 

Wheat millers, storage permits, 117 
When agent can buy from principal, 86 
Wholesale and retail division, organiza¬ 
tion of, 108 

Wholesalers, butter, 185 
Wholesale grocers and margins, 54 
Wholesalers’ profits, eggs, 176 
Window posters, 36 


Y 

Yeast dough goods, 94 

Young Men’s Christian Association 
bakery, 97 


251 


H 311 84 






I 


s 








mm 



p ^o 

%" & ,.., % *•■• <* 

^ st> ** n /& »' 

a°, V<^ • 

4 . 03 *^ 4 * v - 


» 0 

f° 

s? **i*cj** ^ v , 

k* ^ ^ ♦ 

V, W : 

.'%a**’' 4*\, °»-^\r- 

o^ *'<> , A«* A 

,*** , 0 * ..*'•♦ ^o <$> 

* C *'o5’/t77?2? ° 4*^ * 

k ^ o? •iimltfi' Vby ° 

v°-^ 


^ .° r ) y ' "\ \ ^6f*' 4 

» 6 „ O 0 ^0 ^ *•<■•• . ^ 

CV .0' » Y • °<p « 

•VV/iV •*> A V * 

tMiM&i **& • 

• ,^'V ° 

> ^ “ 


J* * A/' y ^A •* ° /S 

*• ** ^ *jWv ^ ^ 

.<V <** *?Y.'* . 6 * % 

£ tJsSJ *<.*%> r 0* t •*■'*.» 

1 .C^nv. ■v « 



k ^6^ _ 

*$■ o *0 v% ► * X o. * 9p 

v A o ^ a o v _ 

A° >, "’■ / *»»» 

9 »**»« ”> O- ,«••<■_. ‘c* o' 

^ w ^ ^ 

V 


* 4 l^^> -» o ^C) if* 

, °* £r ^v •• ^ 

%> °* A,J A^ <* *'••**' <(F ^ # '<>. 

*0 <& V <v 0 w ° * xf> r\V .ti« ^ 

O 4*»- f, u ''*ryyiJ!i 

•j> 4 N \ Cv\\\n%^ V*. v ^nf/ypr? 

■* :-^ia*. tu 0 < :£mt:~ 

' 4 0 . 




•P 

; ^ 


A> o N q 

AV c° H ° + •<£. 

^O ^ " 

° > « ‘Vn ig ^ * 

&*+ ^ 

^ &Z44/ «* 0 

^ ® ' 1 \V ^ * ® N 0 A? '^P' - » / 1 

4 / , S * ^ > /■% /\ > y ^ _ y^- 

k ' ^ ^ < 1 ^ * tA^sf/h , 0 ^ - 

>S ,J 


A U $z» ••'* & 

0 V « y *o^ ^ -O' 

°. +*& Zi, 

* 4 ? 0 MJ &> 

<C V d* * ^ 
N* ' . . > • ,C^ % 'o. 

* f 0 ^ ,c^, c 


/ & % •JSgm* $ 

*• oNo 0 ^ 

y , ^c^\h ,, %».' < * *T" ^ A "" 


*■ «.f“ c\ ^ 

<5L> O^ « 

.V 1 ..., ft> - 

S*§®& %> 4>° . 

r v/> V* 


*5^ *°_c4SNv /s ' < «‘ ^ .cr 

A ^ ’^xvm'%,'^ '7 \ n . C * 

r . o<, ^®“. • 

v°’ 7 k_ ’.' 1 ^^P>' ^ 5 °^ ■*. 

aJ ■% ‘■ym'fs <& f. v 

0 ^ *” <y % ' 

.. .,« » t 4 * S 8 fete'. ^ 



^ 4 1 









U° ^ A^ 't 




v v • • * -0 <Z> w o • 

v% °> 4? -• 

k ” ^o 5 ,«&**. , *bv * 4 f 



r* 





< A •& 

* vv O **77i*' J& v ^ 


°, %# ; 

: .^V °. 

* * v * 



O * * 


> «.*■ ^ *" VTJ^^O V ® 3>° ' 7 ^» 

*■ <»r o * a ^ 

A ^ * • " ° ° A? <j> * •»■» 

v ^ av ^ v > .•••-•* 

^ ^ a *• 

v\ 

» «» ♦ aV ^ 

£* • | 'V "v' %j> 

A <v <* **' 77 ’*' < 6 V T o 

^O. o # .! # v A r\> » *“ 







.+ *3V - 

“. ^ o* 

• A 0 ** 

CV * 

L f)' * ^, *,?■«• ' r * > ‘ V V * *Ja.xr*sf * <’ 

. v , A* * 

° c**r> o * aV*** ** 

* AV •sh/MXn * A> *5*^ I 

-J. .CT 'b. '<>.»* A <, -... 

<£ pJv ,V»» » e 0 « 0 * <f> x»V - v * « 

. ^ . 0 ° ,’^, °o <*• * '° -*S 

<?*_ «'P' o 



> <L > V* ^TTCJ^v' 2y ° }P VV 

' «5> °o 'c^.* 0 % 

^ .... A© °”° 0 *° f ,„. *■ 

** ^T> A 

^ Vv •, 

* A^^ -* 

.* <p % 

° • * * A v^ V * • • 

jf o a o» «4 <$> o 

+ t< . k S^vah'^L<»* *7* r ^ 

» i. 0- V r $£%m}; 

p ^ >ywf,* J- o 

A° ^ • 1 ^ c 

«* ^ A$* * 

- r, k J> \ *W£W<* 

*.« 4 o *<>.>* 

*P_ 6 

* ~y C V ° 




o \0 TV 

' ^ ^ ^ * ^/JlPgr * X> ^ - 

XV ^ MO- f 6 ^ ‘ *•»'•* %** 

\> ^ « v *«^ 'V' v % «s**^ ^ 

. **a©*. ^ 






- Cp O 

'o* A *» A <v r.s 4 ^ *•>»* <V <^ -- 

r °o y2> ^ C° y&jrteL-' O & if. ^ 

’- ^ ^o 5 -'JllllK' ^o 5 

•/ V^V % *^‘ / %^''/.. 

A? 4 t#o, A *> 5«Vv <rv <0 V «o •<>-«• %> V %s 

^ W /Jil\ \/ %/ : 

x V ” r» o (/// v),v \\\\- ** A^ , ' , ^ ■* ° c5 '^?0 O * 

3 ^ o^JgANy * a v * W °^, o v J^Ar * 

<^ rp ‘'o.*'* A <> <5. 'o,** 

A v . t ( « „ 'P' . A v a ° N °« <£> _v ♦»- 1 * * v-. 4^ 

% V c° ^ ^ c. 0 ?&£%£■. ° x-r 

' y 0 ^o 5 ' 5 bv^ 

* A % f o° %*»..’• ’ </" %'*•.•’* f °° ^ 

<J #' 4 k:. % />V;<> 1 -.^. ,^ v .•«*-.% y,-;V*. 

- ,J bv * 

* A V ^* - 

, <& '•% % v ^'V x A ^ '. w , 

<v 40 ^ O. 'o.** A <> ' A/V* 

0 t 1 ® x ft o N ° ^ <^. r 

> # \ c° *£^£% ^ ^ ^ , 0 




4°^ 


°o 




e r vf'V •.; 

* * aV*^ - 

oMW* aV ^ , 


HECKMAN 

BINDERY INC. 







DEC 84 


u=rar N. MANCHESTER, 
fey INDIANA 46962 



* 5 °,* 



































